ASK Group plans to raise as much as 10 billion rupees ($122 million) for its debut private credit fund, according to people familiar with the matter.

The firm, which offers wealth and investment management services in India, has also hired Nomura Holdings’s former head of debt Shantanu Sahai as senior managing partner to spearhead the expansion of its business in the segment, said the people, who asked not to be identified because the matter is private. That amount of money to be raised hasn’t yet been finalized and could still change, one of the people said.

Private credit - where investors like pension funds lend directly to companies — is one of hottest asset classes globally, with global assets under management growing rapidly to $1.5 trillion, according to financial data provider Preqin Ltd. The loans typically feature floating interest rates, which means investors get paid more when rates rise.

India has also experienced a pickup in private credit activity. Restrictions on bank lending — such as to fund mergers and acquisitions — make it an attractive proposition.

Sahai resigned as Nomura’s India head of debt after seven years with the Japanese bank, Bloomberg reported in September.

An ASK spokesperson declined to comment when contacted by Bloomberg via telephone.

(Corrects third paragraph of story published on June 27 to show that global private credit figure of $1.5 trillion is for assets under management)