Swiss private markets firm takes majority stake in Indian NBFC, signaling growing interest in South Asian finance sector.

In a landmark transaction that underscores the surged appetite for non-bank financial companies (NBFCs) in India, Partners Group, the global private markets investment manager headquartered in Zug, Switzerland, has agreed to acquire a controlling stake in Infinity Fincorp Solution for an enterprise value of ₹20 billion. The deal, announced on July 11, 2025, marks Partners Group’s entry into the Indian NBFC space, aligning with its strategy to capitalize on high-growth markets.

Founded in 2012 by a consortium of finance veterans, Infinity Fincorp Solution has become a rapidly growing NBFC specializing in microfinance, small business lending, and affordable housing finance. Over the past decade, the company has expanded its footprint across eight Indian states, serving over 500,000 customers through a network of 120 branches. With a loan book exceeding ₹15 billion and a reported revenue of ₹3.4 billion in FY2024, Infinity has demonstrated robust asset quality, maintaining a gross non-performing asset (GNPA) ratio below 1.5%.

Partners Group, which manages approximately $143 billion in assets globally, has accumulated extensive experience in credit and private debt investments. The firm’s move into Infinity Fincorp emerges after a year-long due diligence process assessing the NBFC’s loan portfolio, governance practices, and regulatory compliance framework. Sources close to the negotiations indicate that Partners Group will acquire a 51% stake, while the founding investors and management team will retain the remaining equity, ensuring continuity in the company’s leadership.

Under the terms of the agreement, Partners Group will invest through its latest Emerging Markets Direct Equity strategy. The transaction comprises a combination of primary capital infusion—aimed at bolstering Infinity’s balance sheet for further expansion—and secondary purchase of shares from existing stakeholders. Infinity’s chairman, Rajesh Batra, described the partnership as “a milestone,” emphasizing that the fresh capital will accelerate digital lending initiatives and geographic expansion into Maharashtra and Karnataka.

Regulatory approval is a critical next step. Infinity Fincorp is regulated by the Reserve Bank of India (RBI) and must secure a no-objection letter for the change in ownership. Market observers expect a smooth clearance given the NBFC’s track record of compliance and transparent governance. Meanwhile, the Competition Commission of India (CCI) will also review the deal to ascertain that it does not raise antitrust concerns in the credit market.

The acquisition has elicited positive reactions from industry analysts and credit rating agencies. ICRA, a leading Indian rating firm, affirmed Infinity’s existing A- rating, noting that Partners Group’s global expertise and deep pockets could further strengthen the NBFC’s capitalization and risk management. Jefferies India, in a research note, upgraded the stock’s outlook from “neutral” to “positive,” predicting that Infinity could achieve a compound annual growth rate (CAGR) of 25% in loan disbursements over the next three years.

From a strategic perspective, the deal highlights a mutual convergence of interests. Indian NBFCs, long-starved of patient capital and advanced risk management practices, are increasingly attractive to global investors seeking higher yields than those available in developed markets. Conversely, international asset managers face compressed returns in sovereign bond markets and are diversifying into credit assets in emerging economies like India, where regulatory frameworks have matured substantially.

In a statement, Partners Group’s co-CEO, David Layton, affirmed the firm’s commitment to supporting Infinity’s growth trajectory. “We are impressed by Infinity’s operational excellence and commitment to financial inclusion,” Layton said. “Our investment will not only support the company’s expansion plans but also bring global best practices in governance and digital innovation to serve underserved segments.”

The transaction also underscores evolving dynamics in India’s financial sector. Post-2023, the RBI has introduced several reforms to strengthen NBFC oversight, including tighter capital requirements and stricter asset classification norms. These measures have bolstered investor confidence and set the stage for significant M&A activity. Experts anticipate that the Infinity-Producers Group deal could catalyze similar transactions, as multinational private equity firms and sovereign wealth funds look to acquire stakes in well-run Indian NBFCs.

However, challenges remain. The NBFC sector is exposed to macroeconomic headwinds, such as potential rate shocks and regional credit cycles. Furthermore, scaling digital lending operations poses technological and regulatory hurdles, including cybersecurity risks and data privacy compliance. To mitigate these risks, Partners Group plans to deploy a dedicated team of credit analysts and technology experts to collaborate with Infinity’s existing staff.

As the deal moves toward closing—expected by Q4 2025—market participants will be watching key indicators: the pace of branch expansion, the performance of the newly launched digital loan platform, and any shifts in asset quality metrics. For Infinity’s management, the partnership represents a vote of confidence in their business model, reaffirming the company’s vision of providing affordable credit solutions to underbanked segments.

Ultimately, the ₹20 billion acquisition by Partners Group is more than a capital transaction; it is a signal of India’s maturation as a frontier credit market and the deepening integration of its NBFC sector with global private markets. As international investors continue to explore opportunities in South Asia, transactions like this will shape the future of credit intermediation and financial inclusion in the region.