Mumbai: India-based private equity (PE) and venture capital (VC) fund managers now hold $28 billion in assets under management (AUMs) as of June 2018 (the latest data available), up from just $10 billion at the end of 2008, according to alternative assets data tracker Preqin.

“This growth has accelerated since 2015, spurred by strong fund-raising momentum: 2015 set a fund-raising record for the country, only for 2017 to surpass it, and annual capital totals have exceeded $2 billion in the past four years," it added.

According to the report, 2017 marked a record 35 India-based fund closures, securing an aggregate $3.6 billion, an all-time high, while 2018 continued that trend with 26 funds raising $3.3 billion.

Fund-raising has been spurred by a virtuous cycle of strong distributions from private equity and venture capital funds driving investor appetite and reallocation. India-based PE and VC funds have returned more capital to investors than they called up in each year since 2014.

“There are more India-based funds than ever before seeking investor commitments. A record 125 funds are in market as of January 2019, seeking a combined $18 billion from investors," said Preqin.

Regulatory changes and government backing have contributed to a strong deals market, it added.

“India is one of the fastest-growing global economies, and is on track to surpass UK to become the fifth largest economy in the coming months," said Christopher Elvin, head of private equity, Preqin.

My Reads Logout