Preqin has released a report highlighting the increasing significance of private equity in India, a market traditionally dominated by venture capital. Despite challenges posed by global economic conditions and declining investor sentiment, private equity investments have demonstrated resilience.
According to Preqin, India's private equity landscape has shown growth, with the number of deals rising from 141 in 2022 to 153 in 2023, despite declines in other regional markets. The overall deal value remained stable, supported by significant transactions such as HDFC Bank's $61.7 billion buyout in 2022. In the first half of 2024, India recorded 67 deals worth $7.5 billion, indicating continued momentum.
The exit market for private equity in India has also thrived. Preqin reports that exits increased from 49 in 2022 to 85 in 2023, with 46 exits recorded in the first half of 2024. This growth is largely attributed to the strong performance of India’s public markets, which have outperformed many major economies.
Aditya Joshi, managing partner at Brookfield Asset Management, said that "India’s scale and long-term economic stability make it an emerging market where large amounts of capital can be deployed effectively, with the potential for strong returns."
India’s economy is rapidly growing due to strong GDP growth, favorable demographics, extensive infrastructure investment, and economic reforms that attract global private capital. According to Preqin reports and data, private capital assets under management (AUM) have more than tripled over the past 15 years, reaching a record $124.3 billion by the end of 2023.
Preqin was founded in 2003 and serves over 48,000 clients worldwide. It employs 500 researchers and more than 1,500 staff across its global offices. The company specializes in delivering data and insights on alternative assets to enhance decision-making within the finance sector.