“India is one of the world’s greatest growth stories and is at a stage where it now offers private market investors – general partners and limited partners alike – tremendous opportunities to achieve both alpha and impact in the world’s fastest growing major economy,” said Jo Murphy, Managing Director, Asia Pacific, Industry Relations, CAIA Association
India’s emergence as one of world’s most entrepreneurial and technology-oriented nations presents massive opportunity for PE/VC investors, but industry standards must keep pace as country’s alternative investment industry becomes larger and more sophisticated.
MUMBAI, INDIA (March 10, 2022) – The Chartered Alternative Investment Analyst (CAIA) Association, the professional body for the global alternative investment industry, today released a comprehensive report on the state of the Indian alternative investment industry – The Rise of India’s Private Equity Market.
This report draws on insights from CAIA’s regional and global leaders, and also includes commentary from close to a dozen Indian alternative investment luminaries, giving readers both within India and around the world key insights into where India currently finds itself in its ongoing, fast-paced economic growth story and with regard to key aspects that make the country’s private equity and venture capital landscapes so unique.
“India is one of the world’s greatest growth stories and is at a stage where it now offers private market investors – general partners and limited partners alike – tremendous opportunities to achieve both alpha and impact in the world’s fastest growing major economy,” said Jo Murphy, Managing Director, Asia Pacific, Industry Relations with CAIA. “We felt this was an opportune time to gather some of the brightest minds in the Indian alternative investment community to help shine a clear light on the trends, opportunities, pitfalls, and greater need for ongoing professional education and the highest ethical standards as India continues to attract significant investor capital, both foreign and domestic.”
As CAIA points out in this new report, in the wake of the COVID-19 pandemic, India’s economy has continued its strong recent growth, with the country’s GDP expected to reach 9.5% in 2021/22, making it the third-largest contributor to global GDP. Amidst a number of key factors, including the Indian government’s ongoing investment in digital and physical infrastructure, CAIA sees several force multipliers for the country’s key growth drivers that should play a role for at least the next decade, such as its young population, growing middle class and continued shift to urbanization.
Simultaneously, India’s private equity and venture capital spaces are reaching new levels of sophistication, and fundraising. As the report points out, according to Venture Intelligence, which worked closely with CAIA as a knowledge partner in producing key data for this report, private equity firms (including VC) invested US$39.5 billion in India-based companies during 2020, 4.6x the capital invested just ten years earlier.
“The pace of the growth seen in India right now is almost unprecedented,” added John Bowman, Executive Vice President with CAIA. “But growth without a concurrent investment in education and a commitment to standardizing best practices can often prove itself unsustainable or lead to less than desirable outcomes for the end investor, which is why we are so pleased to be releasing this report today.”
Among those contributing sections to The Rise of India’s Private Equity Market are:
- Sridhar Sankararaman, Managing Director, Multiples Alternative Asset Management;
- Harsh Singhal, Senior Investment Professional;
- Satya Bansal, Founder, Blue Ashva Capital;
- Ninad Karpe, Partner, 100X.VC;
- Ankur Bansal, Executive Director, Blacksoil;
- Anand Lunia, Founding Partner, India Quotient;
- Arun Natarajan, Founder, Venture Intelligence;
- Jack Wu, Senior Director, CapitaLand; and
- Arvind Mathur, Chairman, Private Equity Pro Partners.
“There is perhaps no better group of professionals we could have brought together to help frame both the current situation and the future growth path for PE/VC in India,” said Shreekant Daga, Associate Director with CAIA. “Their contributions to this report are invaluable and help make this document something we believe will prove to be essential reading material for anyone working in alternative investments with an interest in the India story.”
To access The Rise of India’s Private Equity Market, please click here.
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About the CAIA Association
The CAIA Association is a global professional body dedicated to creating greater alignment, transparency, and knowledge for all investors, with a specific emphasis on alternative investments. A Member-driven organization representing more than 12,000 professionals in more than 100 countries, CAIA Association advocates for the highest ethical standards. The organization provides unbiased insight on a broad range of investment strategies and industry issues, key among them being efforts to bring greater diversification to portfolio construction decisions to achieve better long-term investor outcomes. To learn more about the CAIA Association and how to become part of the organization’s mission, please visit https://caia.org/.