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At $1.1 Billion HDFC Credila meets BPEA EQT & ChrysCapital: What Next?


Photo representing Education Loans

By AltG Research on behalf of Poornima Vardhan & Taponeel Mukherjee


What’s The Deal?

The latest HDFC Credila Deal is a $1.1 Billion deal that sees new India entrant BPEA EQT Group and old-timer ChrysCapital team up for the stake. The deal shows the appetite global capital has for Indian assets, given the growth trajectory for India.


What’s At Stake?

But, the rich deal valuation highlights the question of how this deal generates value and, more importantly, how private capital is allocated to the Indian markets. Large funds are constrained by deal sizes whereby competitive forces for deals force high valuations at entry. This is in spite of the fact that India’s private markets are a $1 Trillion opportunity that will soon be a $10 Trillion opportunity in the next two decades.


What’s The Future?

The answer lies in platform structures that can allocate capital in much smaller sizes of 20 to 50 million dollars using hybrid securities to rapidly turbocharge the growth of India’s high EBITDA Margin and high-growth private companies. The future of driving Indian growth and stellar investment returns in India will be through creative deal-making. A pure financial sponsor approach in India has limitations and significant pitfalls. Innovative Platform Structures will be the key to unlocking A Trillion Dollars in Value.

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