Co-investing rights become key for LPs, reshaping private markets

become a strong pull from a fundraise perspective.

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The shift is visible in recent trends. India’s overall fundraising activity hit an all-time high of $23.2 billion across 123 funds in 2025, per an EY report, underscoring sustained confidence among LPs in Indian funds. The renewed appetite also reflects India’s rising allocation among global LPs amid China’s slowdown.

Fund managers are increasingly using co-investment access as a lever to attract capital.

“This is how it is pitched to LPs at the time of fundraising—the co-investment right is equal to the amount invested by a LP. These are ways to maximize their investment in the fund,” said Navin Honagudi, managing partner at Elev8 Venture Partners. The growth-stage venture capital firm, along with its limited partners, invested ₹300 crore in nutraceutical brand Fast & Up's parent Fullife Healthcare in March.