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6 May 2025
By Dinesh Nair
May 6, 2025 at 9:00 AM GMT+4
Synergy Capital, founded by former ArcelorMittal SA executive Sudhir Maheshwari, is looking to raise $1 billion by next year for its latest fund that focuses on private credit in Asia, particularly in India.
The Dubai-based firm has already secured $715 million for its third fund at the first close, exceeding the predecessor vehicle that raised $600 million from family offices and high net-worth individuals. It’s also more than doubled its $300 million inaugural fund. For the very first time, Synergy Capital is tapping into institutional investors to reach the $1 billion mark for the new vehicle.
“When we approached institutions previously, they wanted to see a track record before committing capital,” Maheshwari said in an interview. “We now have a proven, highly successful track record with our first two funds. Most of the large institutions will either commit a minimum of about $100 million or 10% of the fund size," he said.
Maheshwari set up Synergy Capital in 2015 after leaving ArcelorMittal, where he had spent 27 years. He worked on some of the most high-profile transactions in the metals and mining industry, including the €30 billion ($34 billion) merger that created ArcelorMittal itself, which is one of the world’s largest steelmakers.
Synergy Capital initially started off as a private equity and advisory shop, tapping high-net-worth individuals and family offices, as well as Maheshwari’s experience in the industrials and infrastructure sectors. Since its inception, the firm has deployed $1.2 billion in capital across debt and equity, focusing on structured transactions that provide downside protection. It has also executed nine exits.
“I felt the need to pursue a version 2.0 of my professional life — one where I could build an institution and leave a lasting legacy,” Maheshwari said. “We’ve chosen to invest in the broader industrials and infrastructure sectors because that’s a space we know very well and have operated assets in previously. We always operate with the mindset that, if needed, we can take the keys and run the company. That said, we haven’t needed to do so yet.”
Massive Conviction
Synergy’s latest fund will mainly look at private credit opportunities in Asia, seeking to invest more than 50% of the capital in India, according to Maheshwari. The fund is also open to private equity-type deals and plans to commit $20 million to $150 million on individual transactions. Synergy’s latest fund will mainly look at private credit opportunities in Asia, seeking to invest more than 50% of the capital in India, according to Maheshwari. The fund is also open to private equity-type deals and plans to commit $20 million to $150 million on individual transactions.
Private credit in India is expanding alongside Prime Minister Narendra Modi’s infrastructure push, which has created a need for middle-market funding in everything from solar power to roads. Such investments in India totaled $9.2 billion across 163 deals last year, according to an Ernst & Young report. A group of private credit funds has given binding commitments to India’s Shapoorji Pallonji Group, which is raising as much as $3.3 billion in what could be the country’s biggest private credit deal, Bloomberg News reported in March.
With banks no longer being the easiest source of capital for businesses, Synergy Capital sees “compelling opportunities” in private credit.
“We look at India with massive conviction,” Maheshwari said. “In today’s challenging world order, if there is one place everyone is excited about, it is India. I expect large amounts of capital to continue to flow into the country.”
For the latest fund, its size could go up to $1.2 billion if there’s enough appetite from institutional investors, Maheshwari said. However, he saw the $1 billion mark as the “sweet spot.”
“At that size, we’re no longer small and can pursue strategic investments while remaining niche and focused,” he said. “We don’t need to operate like or compete with the big boys.”