India Leads Asia-Pacific Private Market Surge
India is emerging as the top destination for private market investments in the Asia-Pacific region, according to a survey by McKinsey & Company and the Indian Venture and Alternate Capital Association (IVCA). About 31% of surveyed limited partners ranked India first, with 76% placing it in their top three picks, reflecting a shift in regional capital flows as investors seek growth beyond China. More than half of respondents plan to increase allocations to India-focused funds.
Private markets already account for roughly 64% of limited partner allocations to India, with buyout and growth strategies expected to attract the most interest over the next five years. Between 2021 and 2025, private equity and venture capital deal value in India rose to $207 billion, more than 1.5 times the previous five-year period, while exits doubled to around $120 billion. Technology, IT and financial services, healthcare, and consumer sectors accounted for nearly three-quarters of deployed capital.
India’s appeal lies in its structural growth drivers, including entrepreneurial talent, economic momentum, and rising domestic consumption. Investors are increasingly confident, focusing on deeper, more strategic relationships, though domestic fundraising remains concentrated among a few large managers. Industry experts emphasize the need to nurture the next tier of high-quality general partners to create a more resilient private capital ecosystem.
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