IPO exits surging, India is catching up with China on PE returns

Global investors see stronger returns as Indian IPOs emerge as a major exit route, speeding up distributions

- Mansi Verma & Priyamvada C.

India's private equity space, long seen as underperforming in actual returns despite matching China on paper gains or unrealized profit, is now proving its mettle, prompting global players like LGT Capital Partners to double down on the market.

"Our long-term return from India has been largely on par with those of China. However, distributions have been a bit slower largely because the exit markets took time to open up," Peter Lui, principal, LGT Capital Partners, said in an interview with Mint. "In the last couple of years, the Indian IPO market has become a meaningful exit avenue, so the pace of distribution has improved."