Summary:

India's private debt market is predicted to surpass US$ 18 billion in assets under management (AUM) by the end of 2024, owing to firms seeking flexible funding alternatives for expansion. AUM increased from US$ 14 billion in 2022 to approximately US$ 18 billion in 2023, a 29% rise. Regulatory reforms, such as the Insolvency and Bankruptcy Code, have bolstered investor confidence, cementing India's position as a leader in private debt in the Asia Pacific region.

While private debt is the fastest-growing asset class, venture capital (VC) continues to dominate India's private capital landscape, with VC AUM expected to reach US$ 45 billion by 2023, accounting for 36% of all India-focused private capital AUM. Strong economic growth and favorable demographics have boosted private capital, resulting in 560 acquisitions worth over US$ 6 billion in the first half of 2024. According to Preqin statistics, more than US$ 1 billion is expected to be raised by June 2024, with private equity exit volumes hitting 85 in 2023 and 46 by mid-2024.

Source: IBEF 

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