New Delhi, Dec. 12 -- The Private Credit market has been expanding steadily across the globe due to several factors including higher risk-adjusted returns, hedge against inflation, diversification to non-public markets, lower volatility in an otherwise volatile public market, and access to unlisted high-growth companies. However, investors often hesitate to access the Category II private credit alternative investment fund (AIF) market due to re-investment risk caused by multiple capital calls and five-to-seven-year lock-in of funds. Semi-liquid funds aim to address some of these concerns.

Semi-liquid funds are an investment vehicle in illiquid private credit markets while providing investors some flexibility to subscribe and redeem at re...