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07-04-2023 03:55 PM | Source: PR Agency
'INDIA to TINA' - Is the Over-allocation to Private Assets justified?
News By Tags | #3701 #572 #6033

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Over the last 20 years, ending December 2022, India has received foreign inflows of over USD 400 billion in Private markets (Private Equity (PE), Venture Capital (VC), Infrastructure (IR), Real Estate (RE). The cumulative net investments in Public Markets (Public Equity and Fixed Income) for the same period is about USD 250 billion.

We know the market value of the public investments to be around ~USD 650 billion as we have updated mark-to-market valuation. We can only speculate the market value of the Private market investments.

We know the market value of the public investments to be around ~USD 650 billion as we have updated mark-to-market valuation. We can only speculate the market value of the Private market investments.

Private Markets are of course larger and the opportunity set is wider. It includes Private Equity, Venture Capital, Infrastructure and Real Estate. It will always attract and absorb more flows than the public markets of Equity and Fixed Income.

It is also a testament to the improving eco-system: growing opportunity, improving management teams and products, exit options. More importantly, the growing active investor base across global PE firms to large pension/SWFs and the rise in India dedicated fund raises.

 

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