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.