Partners Group Acquires Majority Stake in MSME-Focused NBFC Infinity Fincorp Through $230 Million Investment

Swiss private equity firm Partners Group has agreed to acquire a controlling stake—approximately 75 percent—in Infinity Fincorp Solutions, a Mumbai-based non-banking financial company (NBFC), through a $230 million (₹ 1,950 crore) investment Entrackr+10Business Standard+10The Economic Times+10. The transaction includes a primary issuance of equity valued at ₹ 600 crore (~$70 million) and a secondary purchase of shares held by True North’s fund, alongside participation from existing investors, including Jungle Ventures Finanzwire+2Business Standard+2Entrackr+2.

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💼 Why Infinity? – MSME Credit Opportunity in India

India’s MSME (Micro, Small & Medium Enterprise) sector is crucial to economic growth—contributing around 30 percent of GDP and supporting over 110 million jobs—yet remains underserved by traditional banks AInvest+3AInvest+3AInvest+3. Infinity has carved a niche by providing secured, small-ticket property-backed loans (₹ 3–5 lakh) to unbanked MSMEs in Tier 2–3 cities, backed by residential or commercial property collateral. This strategy has enabled Infinity to maintain a strong capital adequacy ratio (~42.7%) and manage low non-performing assets (~3‑4%) AInvest+2AInvest+2AInvest+2.

🚀 Growth Metrics & Ambition

• AUM Trajectory: Infinity’s assets under management surged roughly 59.5 percent in FY2024, reaching ₹ 1,082 crore (~$130 million) AInvest. The firm operates across 120+ branches in eight states and serves approximately 50,000 customers AInvest+5Business Standard+5Moneycontrol+5.
• Expansion Goals: With the fresh infusion—largely attributable to Partners Group—Infinity aims to increase its AUM to ₹ 4,000 crore by 2027 and expand its branch count from 123 to over 200 AInvest+9AInvest+9AInvest+9.
• Tech-Driven Efficiency: Plans are underway to invest heavily in digitalization and AI-based underwriting systems, potentially halving loan approval times from 14 days to just 7 AInvest+1AInvest+1.

🤝 Partners Group’s Strategic Edge

Partners Group brings significant operational expertise from previous successes, notably its 2016 investment and 2025 exit from Aavas Financiers, an NBFC with a similar focus on rural and underserved customers Viestories+3AInvest+3AInvest+3. At Aavas, Partners Group helped scale operations from 100 to nearly 400 branches while boosting AUM 12x AInvest. Such experience forms the blueprint for replicating success at Infinity.

Additionally, the investment taps into two long-term tailwinds:

1. Urbanization across India’s Tier 2–3 cities, fueling credit demand outside traditional banking hubs AInvestAInvest+1AInvest+1.
2. Digitalization, with rising mobile penetration enabling scalable, cost-effective lending and onboarding.

🔒 Risk Management & Competitive Positioning

Infinity’s secured lending model, captives 98–99 percent of loans backed by real estate collateral—reducing credit risk compared to unsecured alternatives AInvest+1Entrackr+1.

Partners Group’s deep familiarity with Indian NBFC regulations, combined with disciplined underwriting and cost control, are expected to support margin improvement and prevent asset-quality slippages .

📈 Investment Outlook & Value Creation

For Partners Group: This deal presents long‑term exposure to India’s structural MSME growth and gives them a platform to replicate success seen with Aavas . Their majority ownership (75%) allows operational control and future strategic exits—possibly through an IPO.

For Infinity: The firm gains substantial capital, institutional backing, and access to global “best‑practice” operational frameworks.

Risks include potential regulatory delays, macroeconomic headwinds (like rate hikes), and increased competition from banks and fintech lenders. However, Infinity’s strong collateral base and low-cost branch network offer durable defensive advantages.

🔍 Looking Ahead

Key performance indicators to monitor:

• Loan disbursement & AUM growth, expected to double within 2 years.
• Branch network expansion and time-to-disbursement reductions.
• Cost ratios and NPA levels—a reflection of risk control and efficiency gains.

In summary, the $230 million investment by Partners Group is emerging as a strategic milestone in India’s MSME lending landscape. By combining secured lending, digital scaling, and seasoned PE backing, Infinity Fincorp is positioned to become a leading NBFC serving India’s underserved businesses—while offering a compelling long-term growth story for investors.