At $40 billion, the total amount of highly liquid securities available with private investors targeting India is at a historical high. The estimate considers capital available with India-based private equity and venture capital funds, global and Asia-focused funds with an India allocation, sovereign and pension funds, as well as large tech investors such as Naspers. Such record levels of investable capital suggest an improvement in the fundraising environment, and reflect growing interest of limited partners in the India story.
“In terms of sectors, consumer and financial services are the popular segments right now, but there is not much capital available for infrastructure, real estate, or distressed turnaround situations,” said Sameer Sain, co-founder and CEO, Everstone Group.
There is a clear trend that buyouts are on the rise. Fund managers are able to pick up their niches and styles, and are adopting a more focused approach. While there has been a deluge of capital, the meltdown in public markets have turned events. “The recent meltdown in the market has resulted in a window of opportunity. There is a wait and watch situation now,” added Sain.
