Investors in PEs get choosy

EVEN AS FUNDRAISING environment remains challenging, the private equity (PE) space in India is consolidating at the top.

- AYANTI BERA

In 2025, so far, just 12 PE funds have raised $5.78 billion whereas in 2021, a similar quantum was mopped up by as many as 24 players. In 2023 too, the spoils of about $6 billion were shared between 23 funds, as per Preqin data.

This concentration of capital shows that LPs (limited partners) are funneling larger cheques to a smaller number of proven fund managers, pushing the country closer to more homegrown, billion-dollar PE funds.

As Nishesh Dalal, partner and PE leader, Deloitte South Asia told FE, India’s private equity ecosystem is maturing, marked by fewer but larger funds, deeper domestic participation, and a clear shift towards control-oriented investing.“LPs are deliberately backing proven managers with scale and operational depth, and this confidence is reflected in the rise of billion-dollar funds like ChrysCapital and Kedaara Capital,” he observed.