Advanced International Journal for Research

E-ISSN: 3048-7641     Impact Factor: 9.11

A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

Call for Paper Volume 6, Issue 6 (November-December 2025) Submit your research before last 3 days of December to publish your research paper in the issue of November-December.

Credit Capital Emergence in Private Equity Investments and Start-Up Financing

Author(s) Mr. Akhil Ginna, Prof. P Venkateswarlu
Country India
Abstract India’s private equity (PE) and venture capital (VC) landscape is undergoing a decisive shift from growth and buyout deals toward credit-oriented and early-stage financing structures. From its earlier dependence on growth and buyout deals toward credit-oriented and early-stage financing structures, there has been undergoing a shift. Using monthly and quarterly EY-IVCA PE/VC Roundup datasets, this study analyses changes in deal composition, fundraising patterns, and sectoral flows during 2023-2025. Private credit investments expanded by 74% year-on-year in 3Q 2025, accompanied by a 51% rise in start-up funding, while buyouts declined by 64%. These developments signal a structural rebalancing away from high-leverage equity models, structural rebalancing of capital flows as investors prioritise liquidity-flexible, lower-leverage instruments. Sectoral analysis reveals strong participation from financial services, technology, and infrastructure, suggesting increasing investor preference for innovation-driven and asset-backed opportunities. The findings enhance understanding of how private credit mechanisms are reshaping risk intermediation, liquidity channels, and investor behaviour in India’s private market ecosystem.
Keywords Private Equity, Venture Capital, Private Credit, Sectoral Transformation, Financial Innovation
Field Business Administration
Published In Volume 6, Issue 6, November-December 2025
Published On 2025-12-16
DOI https://doi.org/10.63363/aijfr.2025.v06i06.2505
Short DOI https://doi.org/hbf939

Share this