India's Private Markets Boom: $207B Deals in 5 Years Make It Top APAC Pick

According to an analysis by McKinsey & Company highlighted that about 31 per cent of the more than 50 limited partners surveyed ranked India first and 76 per cent placed it in their top three picks.

This indicates a shift in regional capital flows as investors reassess Asia and look beyond China for long‑term growth, according to the report. "More than half expect to increase allocations to India-focused funds," it said.

Moreover, private markets already account for about 64 per cent of limited partner allocations to India and investors expect buyout and growth strategies to draw the most interest over the next five years, reflecting a preference for approaches that offer more control.

The report also said from 2021 to 2025, private equity and venture capital deal value in India has risen over one-and-a-half times to $207 billion compare to the previous five-years, with exits more than doubling to around $120 billion.

Sector-wise, technology, IT and financial services, pharmaceuticals and healthcare, and consumer ‌sectors ⁠accounted for nearly three-quarters of private capital deployed between the aforesaid period.

The report also noted that India's Asia‑Pacific private equity and venture capital deployment jumped around 21 per cent in 2020-24 which was about 12 per cent in 2015-19.

According to research by McKinsey & Company, investors are increasingly leaning into private markets with growing confidence and are seeking deeper, more strategic partnerships, said Kunal Sood, a partner at private equity firm Pantheon.

India's attractiveness to investors is largely driven by its structural growth story, with market participants pointing to the country's entrepreneurial talent, strong economic momentum and rising domestic consumption as key growth drivers.

- IANS