360 ONE Asset's $500M Credit Fund Opens a Strategic Window for Family Offices

Mumbai-based 360 ONE Asset Management is seeking to raise $500 million for a new private credit fund, targeting wealthy individuals, family offices across India, and overseas institutional investors — a move that signals the accelerating institutionalisation of India's alternative credit market. The fund, which has not yet been formally launched at the time of writing, represents one of the more significant private credit mandates to emerge from South Asia in recent memory, and its dual focus on domestic high-net-worth capital and international institutional money reflects a structural shift in how Indian asset managers are thinking about their investor base.

For principals of single and multi-family offices in Asia-Pacific, this development matters for a direct reason: India's private credit market is rapidly maturing into a viable allocation destination, and the entry of a firm with 360 ONE's scale and distribution reach changes the accessibility calculus considerably. Family offices that have historically treated Indian credit as too opaque or operationally complex now have a more structured vehicle through which to express that exposure. Whether you are based in Singapore, Hong Kong, or Dubai, the question is no longer whether India belongs in a diversified alternatives sleeve — it is how to access it efficiently and with appropriate governance.

Why 360 ONE Asset Is Well-Positioned to Execute This Mandate

360 ONE Asset Management — formerly known as IIFL Asset Management — manages approximately $10 billion in assets under management as of its most recent disclosures, making it one of India's larger independent wealth and asset management platforms. The firm rebranded to 360 ONE WAM in 2022, signalling a strategic pivot toward a broader wealth management identity that encompasses asset management, wealth advisory, and alternative investments under a single umbrella. Its client base already includes a significant proportion of ultra-high-net-worth individuals and family offices within India, giving it a natural distribution channel for a fund of this type.

The firm's existing alternatives platform has included real estate credit, structured credit, and special situations strategies, which means the $500 million target is not a first foray into private credit — it is an expansion of a proven capability. This track record matters enormously to family office allocators who are conducting operational due diligence, because it reduces the key-man and execution risk that often accompanies first-time fund managers in emerging market credit. The firm's listed status on Indian exchanges also provides a level of transparency and regulatory accountability that unlisted managers cannot offer.

India's Securities and Exchange Board of India (SEBI) regulates alternative investment funds (AIFs) under the AIF Regulations 2012, and Category II AIFs — the structure most commonly used for private credit strategies — are subject to specific diversification, leverage, and reporting requirements. 360 ONE's familiarity with this regulatory framework is a meaningful operational advantage when marketing to sophisticated overseas investors who need to understand the legal wrapper before committing capital.

The Indian Private Credit Market: Scale, Opportunity, and Risk

India's private credit market has grown substantially over the past five years, driven by a combination of factors: non-bank financial companies (NBFCs) facing tighter liquidity conditions, mid-market corporates underserved by traditional bank lending, and real estate developers requiring bridge and structured financing. According to data from the Indian Private Equity and Venture Capital Association (IVCA), private credit AUM in India crossed $10 billion in 2023, with projections from multiple market participants suggesting the addressable market could reach $30 billion to $40 billion over the next decade as the economy continues to formalise and deepen.

The risk-adjusted return profile of Indian private credit is a core part of the investment thesis: senior secured credit strategies in India have historically targeted net returns in the 14% to 18% range in rupee terms, which translates to approximately 10% to 14% in USD-hedged terms depending on the cost of currency hedging. For family offices running diversified alternatives portfolios, this compares favourably to comparable risk in developed market private credit, which has been yielding 8% to 12% net in recent vintages. The spread premium reflects genuine structural complexity — currency risk, legal enforcement risk, and liquidity constraints — but for investors who have done the work, it is a compensated risk.

Currency hedging costs between the Indian rupee and the US dollar have historically run at 4% to 6% per annum, which is a material drag on USD-denominated returns. Family offices accessing this fund from Singapore or Hong Kong will need to factor this into their net return modelling, alongside the fee structure of the fund itself. Jurisdictional structuring is therefore not a secondary consideration — it is central to the economics of the allocation.

Structuring Considerations for Cross-Border Family Office Investors

For family offices based in Singapore considering an allocation to a SEBI-regulated Category II AIF, the structuring question is non-trivial. Direct investment into an Indian AIF by a Singapore-based family office is permissible under India's Foreign Portfolio Investor (FPI) and Foreign Direct Investment frameworks, but the precise route — FPI, FDI, or through a Mauritius or Singapore holding structure — has material implications for withholding tax, capital gains treatment, and repatriation. Singapore-based investors benefit from the India-Singapore Double Taxation Avoidance Agreement (DTAA), which has been progressively tightened since the 2016 amendments but still offers meaningful treaty protections for certain income streams.

Family offices operating through a Singapore Variable Capital Company (VCC) structure — a framework introduced by the Monetary Authority of Singapore (MAS) in 2020 — may find the VCC a useful vehicle for aggregating commitments to Indian alternatives funds, given its sub-fund flexibility and the ability to hold multiple strategies under a single legal entity. The MAS has actively promoted the VCC as a fund domicile for Asia-focused alternatives, and its recognition by Indian counterparties has improved as the structure has matured. Similarly, Hong Kong-based family offices using an Open-ended Fund Company (OFC) structure regulated by the Securities and Futures Commission (SFC) should assess whether their OFC's investment scope permits direct allocation to Indian AIFs, as this is not always standard in template OFC constitutions.

For principals based in Dubai operating under the DIFC (Dubai International Financial Centre) framework, the structuring pathway to Indian credit is less direct, but the DIFC's growing network of fund managers with India mandates means that co-investment or feeder fund access is increasingly available. The DIFC's regulatory environment, overseen by the Dubai Financial Services Authority (DFSA), is broadly compatible with the due diligence standards that Indian AIF managers are accustomed to from institutional investors.

"India's private credit AUM crossed $10 billion in 2023 and could reach $30–$40 billion within a decade — making structured access vehicles like the 360 ONE fund increasingly relevant for Asia-Pacific family office allocators building alternatives sleeves."

Strategic Takeaways for Family Office Principals

1. Assess your India credit exposure gap: If your alternatives portfolio has less than 5% exposure to South Asian private credit, the 360 ONE fund represents a timely opportunity to benchmark your allocation thesis against a well-structured vehicle from an established manager.
2. Model the currency impact before committing: USD-hedged returns from Indian rupee credit strategies are materially different from headline rupee returns. Run a full net-of-fees, net-of-hedge analysis before making any comparison to developed market credit alternatives.
3. Clarify the structuring route early: Whether you access the fund via Singapore VCC, Hong Kong OFC, DIFC entity, or direct FPI registration will determine your tax treatment and repatriation efficiency. Engage a cross-border tax adviser with specific India-APAC experience before the subscription deadline.
4. Review SEBI AIF Category II regulatory requirements: Category II AIFs are prohibited from using leverage except for day-to-day operational purposes. This is a structural protection for investors, but it also means return generation is entirely dependent on underlying credit performance rather than financial engineering.
5. Benchmark the fee structure: Private credit funds in India typically charge management fees of 1.5% to 2% per annum and carry of 15% to 20% over a hurdle rate of 8% to 10%. Confirm whether the 360 ONE fund's terms are competitive within this range before committing capital.

What to Watch: Key Developments Ahead

The formal launch and first close of the 360 ONE credit fund will be a significant data point for the broader India alternatives market. A first close above $150 million would validate institutional appetite and likely accelerate competing launches from other Indian asset managers. Watch for SEBI's evolving guidance on AIF marketing to overseas investors, which has been subject to periodic clarification notices and could affect the fund's international distribution strategy.

More broadly, India's Union Budget and Reserve Bank of India (RBI) monetary policy decisions in 2025 will shape the credit environment into which this fund deploys capital. A tightening credit cycle would benefit senior secured lenders; a rapid rate-cutting cycle could compress spreads and reduce the return premium that makes Indian credit attractive relative to global alternatives. Family office principals should monitor RBI policy meetings and SEBI AIF regulatory updates as leading indicators of the fund's deployment environment. The next RBI Monetary Policy Committee meeting and any SEBI circular updates on overseas AIF marketing will be the two most important near-term signals to track.

Frequently Asked Questions

What is 360 ONE Asset Management and how large is its AUM?

360 ONE Asset Management, formerly known as IIFL Asset Management, is a Mumbai-based asset manager and part of the listed 360 ONE WAM group. The firm manages approximately $10 billion in assets under management across wealth management, mutual funds, and alternative investment strategies including private credit and real estate.

How can a Singapore or Hong Kong family office invest in an Indian AIF?

Singapore and Hong Kong-based family offices can access Indian Alternative Investment Funds through several routes, including direct Foreign Portfolio Investor (FPI) registration, investment via a Mauritius or Singapore holding structure under applicable DTAA provisions, or through feeder fund structures. Singapore VCC and Hong Kong OFC vehicles may be used to aggregate commitments, subject to the fund's constitutional documents permitting such allocations. Tax structuring advice specific to the investor's domicile is essential before committing.

What returns do Indian private credit funds typically target?

Senior secured private credit strategies in India have historically targeted net returns of 14% to 18% in Indian rupee terms. After accounting for USD-INR hedging costs of approximately 4% to 6% per annum, USD-equivalent net returns typically fall in the 10% to 14% range, depending on vintage, strategy, and fee structure. This compares favourably to developed market private credit on a risk-adjusted basis, though investors must account for currency, legal enforcement, and liquidity risks specific to the Indian market.

What is a SEBI Category II AIF and what are its key restrictions?

A SEBI Category II Alternative Investment Fund is a pooled investment vehicle regulated under India's AIF Regulations 2012. Category II AIFs include private equity funds, debt funds, and fund of funds that do not fall under Category I or Category III. A key restriction is that Category II AIFs may not use leverage except for day-to-day operational requirements, which means returns are driven by underlying asset performance rather than borrowed capital. Minimum investment thresholds and diversification norms also apply under SEBI guidelines.

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