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Preqin data shows that private equity exit volumes in India reached 85 in 2023 and 46 by mid-2024. Image: Bloomberg
India’s private debt market is on track to exceed $18 billion in assets under management (AUM) by the end of 2024, according to a report by Preqin. The rise comes as businesses across the country increasingly turn to flexible financing options to fuel growth, especially in sectors where traditional lending may not suffice.
The report highlights that India-focused private debt AUM grew from under $14 billion at the end of 2022 to nearly $18 billion a year later—a 29 per cent increase. This growth cements India’s position as a regional leader in private debt, outpacing individual markets in the Asia-Pacific region, the report stated.
This shift has been supported by the introduction of regulatory reforms, such as the Insolvency and Bankruptcy Code, by the government, which has bolstered investor confidence.
While private debt is the fastest-growing asset class, venture capital continues to dominate India’s private capital landscape, with AUM nearing $45 billion in 2023, accounting for 36 per cent of all India-focused private capital AUM, according to the report.
The country’s booming economy and favourable demographics have buoyed the sector, leading to over $6 billion in deals with a volume of 560 in the first half of 2024, despite a softer global market for venture capital.
According to the report, private equity in the country remains resilient as well, benefiting from robust public markets and consistent fundraising activity. Exit volumes have held steady, and fundraising figures for 2024 are on pace to surpass the previous year, with over $1 billion raised by June 2024, compared to under $2 billion in 2023.
Preqin data shows that private equity exit volumes in India reached 85 in 2023 and 46 by mid-2024.
First Published: Sep 26 2024 | 11:15 AM IST
