Mumbai: The healthcare sector emerged as the second-largest sector for private credit investment in India by deployment, accounting for 13 per cent of the total deal value in H1 2026, second only to real estate, according to a report by EY.
This demonstrates growing investor confidence in healthcare businesses that offer stable cash flows, defensive characteristics and scalable growth opportunities, the report said.
The trend comes as the sector witnessed significant refinancing and expansion-related financing activity during the period.
Notable transactions included $124 million raised by Manipal Group through private credit financing and $48 million secured by ASG Hospital Group for group funding requirements.
As confidence in the sector continues to improve amid rising healthcare expenditure, increasing demand for quality care and sector consolidation, private credit funds are expected to increasingly position themselves as long-term capital partners, the report forecast.
The report added that the strong flow of credit into healthcare also signals investors’ preference for sectors that can offer resilience amid global economic and market volatility.
