Indian PE and VC assets reach US$28 billion
March 8, 2019

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

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

Fundraising has been spurred by a virtuous cycle of strong distributions from private equity and venture capital funds driving investor appetite and reallocation: India-based private equity and venture capital funds have returned more capital to investors than they called up in each year since 2014. At the same time, regulatory changes and government backing have contributed to a strong deals market.

Christopher Elvin, Head of Private Equity at Preqin, says: "India is one of the fastest-growing global economies, and is on track to surpass the UK to become the fifth-largest economy in the world in the coming months.

"Private equity and venture capital have played an integral part in this development: the provision of private capital has spurred the boom in technology start-ups that have characterized the country's modernization.

"The momentum of recent years seems set to continue unabated – investors have a strong appetite for investments in India, and there are a record number of funds in market to cater to that appetite."

Key India-Based Private Equity Facts:

India-based private equity fund managers hold $28 billion in assets under management as of June 2018. This is

up from $19 billion in December 2013 and $10 billion in December 2008.

Venture capital and growth funds account for the vast majority of assets, holding $13 billion and $12 billion in AUM respectively.

Fundraising has been strong since 2015. 2017 marked a record 35 India-based fund closures, securing an aggregate $3.6 billion – an all-time high. 2018 continued that trend as 26 funds raised a total of $3.3 billion.

Distributions to investors have outstripped capital calls in each year since 2014. In 2016 alone, India-based private equity firms returned a net cash flow of $3.2 billion to investors.

The investor universe in India is dominated by private wealth. Family offices and wealth managers account for 19 percent and 17 percent respectively of India-based private equity investors – the largest proportions.

There are more India-based funds than ever before seeking investor commitments, adds Preqin. It calculates that a record 125 funds are in market as of January 2019, seeking a combined $18 billion from investors.





This site, like many others, uses small files called cookies to customize your experience. Cookies appear to be blocked on this browser. Please consider allowing cookies so that you can enjoy more content across globalcustody.net.

How do I enable cookies in my browser?

Internet Explorer
1. Click the Tools button (or press ALT and T on the keyboard), and then click Internet Options.
2. Click the Privacy tab
3. Move the slider away from 'Block all cookies' to a setting you're comfortable with.

Firefox
1. At the top of the Firefox window, click on the Tools menu and select Options...
2. Select the Privacy panel.
3. Set Firefox will: to Use custom settings for history.
4. Make sure Accept cookies from sites is selected.

Safari Browser
1. Click Safari icon in Menu Bar
2. Click Preferences (gear icon)
3. Click Security icon
4. Accept cookies: select Radio button "only from sites I visit"

Chrome
1. Click the menu icon to the right of the address bar (looks like 3 lines)
2. Click Settings
3. Click the "Show advanced settings" tab at the bottom
4. Click the "Content settings..." button in the Privacy section
5. At the top under Cookies make sure it is set to "Allow local data to be set (recommended)"

Opera
1. Click the red O button in the upper left hand corner
2. Select Settings -> Preferences
3. Select the Advanced Tab
4. Select Cookies in the list on the left side
5. Set it to "Accept cookies" or "Accept cookies only from the sites I visit"
6. Click OK

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

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

Fundraising has been spurred by a virtuous cycle of strong distributions from private equity and venture capital funds driving investor appetite and reallocation: India-based private equity and venture capital funds have returned more capital to investors than they called up in each year since 2014. At the same time, regulatory changes and government backing have contributed to a strong deals market.

Christopher Elvin, Head of Private Equity at Preqin, says: "India is one of the fastest-growing global economies, and is on track to surpass the UK to become the fifth-largest economy in the world in the coming months.

"Private equity and venture capital have played an integral part in this development: the provision of private capital has spurred the boom in technology start-ups that have characterized the country's modernization.

"The momentum of recent years seems set to continue unabated – investors have a strong appetite for investments in India, and there are a record number of funds in market to cater to that appetite."

Key India-Based Private Equity Facts:

India-based private equity fund managers hold $28 billion in assets under management as of June 2018. This is

up from $19 billion in December 2013 and $10 billion in December 2008.

Venture capital and growth funds account for the vast majority of assets, holding $13 billion and $12 billion in AUM respectively.

Fundraising has been strong since 2015. 2017 marked a record 35 India-based fund closures, securing an aggregate $3.6 billion – an all-time high. 2018 continued that trend as 26 funds raised a total of $3.3 billion.

Distributions to investors have outstripped capital calls in each year since 2014. In 2016 alone, India-based private equity firms returned a net cash flow of $3.2 billion to investors.

The investor universe in India is dominated by private wealth. Family offices and wealth managers account for 19 percent and 17 percent respectively of India-based private equity investors – the largest proportions.

There are more India-based funds than ever before seeking investor commitments, adds Preqin. It calculates that a record 125 funds are in market as of January 2019, seeking a combined $18 billion from investors.



Free subscription - selected news and optional newsletter
Premium subscription
  • All latest news
  • Latest special reports
  • Your choice of newsletter timing and topics
Full-access magazine subscription
  • 7-year archive of news
  • All past special reports
  • Newsletter with your choice of timing and topics
  • Access to more content across the site

More on:  Asset management