JM Financial Expands Alternative Investment Platform
JM Financial Asset Management has launched its second credit-focused alternative investment fund, JM Financial Select Credit Fund II (SCF II), as the firm strengthens its presence in India’s rapidly expanding alternative assets market.
The Category II Alternative Investment Fund (AIF) has been launched with a base corpus of Rs 1,000 crore along with a greenshoe option of an additional Rs 1,000 crore, taking the potential total fund size to Rs 2,000 crore.
The launch marks another strategic step in JM Financial’s growing alternative investment platform as institutional and high-net-worth investors increasingly allocate capital towards private credit and structured financing opportunities.
Fund To Focus On Performing Credit Opportunities
According to the company, SCF II will primarily invest in performing credit opportunities across sectors, targeting businesses with stable cash flows, strong operating fundamentals and credible promoter backgrounds.
The fund aims to provide structured credit solutions to high-quality companies while generating attractive risk-adjusted returns for investors in a rising private credit market.
Industry experts believe India’s private credit ecosystem is witnessing strong momentum as companies increasingly explore non-traditional financing avenues amid evolving banking and capital market dynamics.
The strategy is expected to focus on businesses with resilient financial profiles and predictable cash generation capabilities, which are increasingly attracting investor interest in the alternative asset management space.
Amit Dharod To Lead Credit Strategy
The investment strategy for SCF II will be led by Amit Dharod, Managing Director of Alternative Assets at JM Financial Asset Management.
Dharod joined the firm last year from Ascertis Credit, formerly known as BPEA Credit, and brings more than 25 years of experience in credit and financial services.
Over the course of his career, he has worked with major financial institutions including ICICI Bank, GE Capital and Royal Bank of Scotland.
JM Financial said the fund will also benefit from the group’s integrated ecosystem spanning investment banking, capital markets and credit businesses, enabling access to differentiated deal flow and stronger origination capabilities.
India’s AIF Industry Continues Rapid Expansion
India’s alternative investment industry has witnessed substantial growth over the last few years as investors increasingly diversify beyond traditional equity and debt products.
According to data released by Securities and Exchange Board of India, total commitments across India’s AIF industry reached Rs 15.74 lakh crore as of December 2025.
The rapid growth has been driven by rising institutional participation, increasing demand for private credit and expanding interest in alternative yield-generating strategies.
Market participants believe private credit funds are likely to play an increasingly important role in India’s financial ecosystem as businesses seek flexible capital solutions and investors pursue higher-yield opportunities in a volatile global environment.
Private Credit Emerges As Key Growth Segment
The launch of SCF II comes at a time when private credit has emerged as one of the fastest-growing segments within India’s alternative investment landscape.
As traditional lenders remain selective in certain sectors, private credit funds are increasingly filling financing gaps by offering customised and structured capital solutions.
Analysts believe firms with strong origination networks, sector expertise and institutional underwriting capabilities are likely to gain a significant competitive advantage as India’s alternative assets market continues to mature.
