Bain Capital-backed 360 One WAM is preparing to launch its fifth private credit fund, taking advantage of a growing number of deals that are propelling India's private credit market towards the $10 billion mark.

This growth is primarily driven by Prime Minister Narendra Modi's infrastructure initiatives, which have opened up more funding opportunities for medium-sized companies.

The firm's private credit assets are close to reaching $1 billion, following the successful completion of its fourth fund at Rs 2,130 crore last year.

The new fund is currently accepting subscriptions and aims to raise the targeted amount in the coming months.

According to Moody's Ratings, private credit has become a crucial source of financing for India's medium-sized enterprises, especially those facing challenges such as low or negative earnings and high leverage.

Central bank Governor Shaktikanta Das emphasized the importance of this financing option, highlighting its flexibility in providing solutions for borrowers without high-quality collateral.