Indian private capital exits exceeded $25bn in 2023
The value of private capital exits in India surpassed $25bn (£19.3bn) in 2023 and $11bn in the first half of 2024, according to the Global Private Capital Association (GPCA).
A GPCA analysis on how India is bucking the slowdown in global private capital liquidity, has revealed deal value in India rose 46 per cent and volume rose 51 per cent in the country year-on-year.
Conversely, in the US and Europe exit value declined 1 per cent and 10 per cent, respectively, over the same period.
The nation overtook China, capturing the highest share (37 per cent) of overall exit value across GPCA markets over the last 18 months.
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The report also noted that, since 2020, India has accounted for 58 per cent of the total private capital deal value in Asia involving middle eastern investors and 51 per cent of private capital deals.
The country’s strategic location, large consumer market and diversified supply-chain was cited as the reason for Gulf Cooperation Council (GCC) investors favouring the market when expanding their exposure in Asia.
Pan-Asia funds, including those launched by KKR, Carlyle, EQT and TPG, have raised more than $128bn since 2019.
The report also highlighted that GPs active in India are increasingly utilising continuation funds, which are already widely used in the US and Europe.
Recently, ChrysCapital raised $700m from HarbourVest, LGT and Pantheon to roll over its stake in the National Stock Exchange, which it first backed in 2016. Fund managers are also exiting portfolios of multiple assets via direct secondary deals.
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The re-election of Prime minister Narendra Modi for a third term in June is expected to support job creation and continued private sector momentum.
Among local GPs, Kedaara recently announced the final close of its fourth fund at $1.75bn and ChrysCapital is targeting $2bn for its ninth.
“Coupled with global pools of capital, new fund launches will drive further deal activity, including secondary exits, throughout the industry,” the report said.
“The pipeline of IPOs and recently announced secondary transactions highlights the sustained confidence of investors in India’s potential across sectors.”
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