Private equity (PE) and venture capital (VC) firms in India raised more funds in the first nine months of 2019 than in each of the past five years.
Between January-September, 28 PE/VC firms raised $6.2 billion, compared to $5.4 billion raised by 43 firms in the whole of 2018, according to financial data provider Refinitiv. It was also the highest amount raised in the past five years, indicating increasing investor interest in Indian alternative investment funds.
“The quest for better risk-adjusted returns in a globally declining interest rate scenario is one of the key factors contributing to the increase in PE/VC fundraising. That is also coupled with India’s long-term growth trajectory compared to rest of the world, as despite a recent slowdown it remains a compelling investment destination,” said Shagoofa Rashid Khan, partner at Cyril Amarchand Mangaldas.
“As far as Indian private equity is concerned, I believe that we have a $100 billion market in the making. As the size of the Indian PE market grows, the size of segment comprising India-specific funds will also grow in line,” said Gopal Jain, managing partner of Gaja Capital.
This article was first published on livemint.com.