Advent International has agreed to invest $304m in Aditya Birla Housing Finance, strengthening its exposure to India’s fast-growing mortgage sector.

The investment will give Advent a 14.3% stake in the lender, valuing the business at 192bn rupees. Once completed, Aditya Birla Capital will retain an 85.7% holding. The transaction is subject to shareholder and regulatory approvals.

Advent previously held a stake in Aditya Birla Capital, which it exited in October after generating a significant return on an initial investment of 10bn rupees. The new transaction marks a targeted re-entry into the group through its housing finance arm.

India’s housing finance market remains under-penetrated compared with the US and China, making it a key area of focus for global private equity firms. Blackstone has invested heavily in Aadhar Housing Finance, while Warburg Pincus acquired Shriram Housing Finance in a 463bn-rupee transaction in 2024.

Aditya Birla Housing Finance manages assets worth 422bn rupees and plans to use the capital to expand market penetration, reinforcing private equity’s role in scaling non-bank lenders across India’s consumer credit landscape.

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