Family offices and wealth managers are the largest investors in private equity and venture capital firms in India, says a report by Preqin, an alternative assets data company.
While family offices are the biggest investors in PE/VC funds with a share of 19%, wealth managers account for 17% of the total commitment raised in PE/VC funds.
Banks and corporate investors followed family offices and wealth managers in terms of the highest contributor to PC/VC funds with 16% contribution each.
Insurance and Investment companies were among other investors who contribute around 8% to the overall investment.
PE/VC funds provide long-term capital to companies. The report says that companies backed by PE/VC funds have shown better performance vis-a-vis other companies, in terms of high-quality governance, consistent performance, and growth, job creation and taxes.
Anita M George, Executive Vice President, CDPQ India, a direct investor in the private equity market, said, “The volume of private equity activity – fundraising, investments and exits – has grown in the past three years and is expected to grow further. The industry has seen a greater range of participants and a wider spectrum of deal types and investment strategies. Deals greater than $100mn have grown in the past three years. Firms are learning from experience and shifting into buyouts and control deals, where they have more influence over their investments.”
