Global private markets investment manager Partners Group has announced its plan to acquire a majority stake in Mumbai-based Infinity Fincorp Solutions Ltd for Rs 1,950 crore, marking one of the largest investments in India’s fast-growing non-banking financial services (NBFC) sector this year. The proposed transaction underscores foreign investors’ growing confidence in India’s structured finance, asset-backed lending, and private credit ecosystem amid robust economic growth.
Deal Highlights
- Buyer: Partners Group, a Switzerland-based global private markets firm managing over USD 150 billion in assets.
- Target: Infinity Fincorp Solutions Ltd, an NBFC specialising in structured finance, SME lending, and supply chain financing.
- Deal Value: Rs 1,950 crore (~USD 235 million).
- Stake Acquired: Majority stake (exact percentage undisclosed but estimated at 51-70%).
- Use of Proceeds: Capital infusion to expand lending book, enhance technology platforms, and meet RBI regulatory capital adequacy norms.
About Infinity Fincorp
Founded in 2016 by former bankers, Infinity Fincorp has established itself as a niche structured finance NBFC with a diversified loan portfolio across:
- Structured debt and asset-backed lending
- SME and supply chain financing
- Promoter financing and special situations
As of March 2025, Infinity Fincorp’s AUM stood at Rs 3,800 crore, with net profits growing at a CAGR of 28% over the last three years. It operates across Mumbai, Delhi NCR, Bengaluru, Hyderabad, and Ahmedabad.
Breakdown of Infinity Fincorp’s Loan Portfolio (FY25)
| Segment | Share of AUM | Key Focus Areas |
|---|---|---|
| Structured Finance | 42% | Promoter funding, real estate structured debt |
| SME Lending | 34% | Manufacturing, logistics, trading SMEs |
| Supply Chain Financing | 19% | Vendor financing for corporates |
| Others | 5% | Special situations, opportunistic lending |
Strategic Rationale for Partners Group
Partners Group has been increasing its exposure to India’s financial services, driven by:
- High Credit Demand: India’s NBFC sector is projected to grow at 12-14% CAGR, driven by SME financing needs and underserved mid-market segments.
- Attractive Risk-Adjusted Returns: Structured finance NBFCs generate IRRs of 14-18% with collateral-backed security.
- Diversification of Asia-Pacific Portfolio: Enhances exposure to India’s non-cyclical credit markets amid global economic volatility.
Partners Group’s Recent India Investments
| Year | Company | Sector | Deal Size (USD Mn) |
|---|---|---|---|
| 2023 | Atria Convergence | Telecom broadband | 1,000 |
| 2024 | API Holdings (PharmEasy) | Digital healthcare | 350 |
| 2025 | Infinity Fincorp | Financial services | 235 |
Statements from Leadership
A senior managing director at Partners Group stated:
“Infinity Fincorp has demonstrated prudent underwriting, disciplined risk management, and consistent profitability in niche structured finance lending. We are excited to support its growth through capital infusion and strategic value creation initiatives.”
Infinity Fincorp’s CEO welcomed the deal, emphasising that it would:
- Strengthen its balance sheet to meet enhanced RBI regulatory norms for NBFCs under the scale-based framework.
- Enable expansion into new lending products and digital platforms to enhance customer acquisition and retention.
- Support inorganic growth opportunities through selective acquisitions in complementary lending spaces.
Implications for India’s NBFC Sector
The deal comes at a time when:
- Credit growth in India remains robust, with overall bank and NBFC credit expanding at 14.9% YoY as of June 2025.
- Private credit and structured finance demand are surging, driven by increased promoter financing, real estate refinancing, and corporate growth capital needs.
- Regulatory oversight by RBI is tightening, necessitating stronger capital adequacy, governance, and risk management frameworks.
Sector Experts’ Views
NBFC sector analysts note that:
- Partners Group’s entry validates international investor confidence in India’s structured finance segment.
- Other global private equity funds are likely to explore acquisitions or strategic stakes in profitable mid-sized NBFCs.
- The deal may intensify competition for asset origination, potentially compressing yields but improving borrower access.
India NBFC Sector Overview (FY25)
| Metric | Value |
|---|---|
| Total NBFC AUM | Rs 32 lakh crore |
| Growth Rate | ~13% YoY |
| Top Segments | Vehicle finance, MSME finance, structured credit |
| Key Trend | Rising cost of funds post-RBI rate hikes; shift towards capital-light fee income models |
Infinity Fincorp’s Future Growth Strategy
The company is expected to deploy the capital infusion to:
- Double its AUM to Rs 8,000 crore by FY28, focusing on secured lending.
- Invest in digital lending and risk management platforms to enhance underwriting efficiency.
- Explore co-lending partnerships with banks, leveraging regulatory frameworks for liquidity optimisation.
- Expand into Tier-2 and Tier-3 cities, targeting the rising formalisation of SME borrowers.
Deal Structure and Regulatory Approvals
The transaction, subject to:
- RBI approval under NBFC ownership norms
- CCI clearance due to Partners Group’s significant India portfolio
is expected to close by Q4 2025. The deal will involve both primary capital infusion and secondary purchase of shares from existing promoters and early-stage investors.
Competitive Landscape
| NBFC | AUM (Rs Cr) | Key Focus | Recent Deals |
|---|---|---|---|
| Infinity Fincorp | 3,800 | Structured finance, SME, supply chain | Partners Group majority acquisition |
| Piramal Finance | 60,000 | Retail, wholesale lending | Internal consolidation |
| IIFL Finance | 65,000 | Gold loans, MSME, housing | Carlyle stake exit in 2024 |
| Edelweiss ARC | 47,000 (assets managed) | Distressed asset resolution | Restructuring driven expansion |
Conclusion
Partners Group’s Rs 1,950 crore acquisition of Infinity Fincorp underscores the strategic shift of global investors towards India’s structured finance and private credit sectors, attracted by robust credit demand, high yields, and the potential for platform value creation. For Infinity Fincorp, this capital infusion marks a transformative milestone to scale its business, strengthen governance frameworks, and drive innovation-led lending in India’s vibrant NBFC landscape.
Disclaimer: This news article is based on public announcements, market data, and industry analysis. It does not constitute investment advice or reflect official policy recommendations. Readers are advised to consult certified financial advisors before making any investment decisions.
