Indian conglomerate Hinduja Group is in talks with private credit funds to raise about $800 million to back the acquisition of Reliance Capital, according to people familiar with the matter, who asked not to be identified because the matter is private. As the the parties haven’t yet struck a deal, the terms could still change. India has become a hotbead for private credit activity, in part because regulation forbids local banks from extending loans for mergers and acquisitions. Over the last five years, the country notched up the highest investment volume in Asia, according to research from the Global Private Capital Association, a body representing investors.

Reliance Capital is a shadow bank once controlled former billionaire Anil Ambani, which was taken over by the central bank in 2021 after more than five large non-bank financiers defaulted within the span of just a few years.