For now, here’s a concise snapshot of the key takeaways—a taste of what awaits within.
AIFs Are Redefining Wealth Allocation in India
AIF commitments grow by ~87x between March 2014 and March 2024 to reach ₹11.35 trillion.
Category II AIFs led the charge, raising ₹9,129 billion and dominating private equity and unlisted securities.
The latest vintages (fiscals 2022–2024) brought a wave of innovation, with 241 new schemes launched by 164 investment managers. Notably, ~44% of these were first-time managers, signaling strong momentum and fresh interest in the AIF space.
Private markets in India continue to demonstrate reliability and resilience, offering a predictable pattern of returns that has stood the test of market cycles.
Over the past five years, Alternative Investment Funds (AIFs) delivered a pooled IRR of 21.54%, generating a 5.39% alpha over the BSE Sensex TRI. Despite a public market bull run, private markets reinforced their role as a cornerstone of India’s investment landscape, outperforming even during market peaks.
In 2024, performance by fund stage stood out:
India’s private markets have come of age, delivering alpha across growth stages and proving their investability even amidst strong public market performance. With private equity fundraising surpassing China for the first time in 2024, a diverse array of sectors driving deals, and growing participation from global and domestic investors, the market stands poised for transformative growth. As 2025 begins, the increasingly sophisticated and inclusive ecosystem signals a bright future for asset allocators seeking lasting value
More than just investments, they’re calculated bets on businesses with proven growth trajectories and predictable returns.
Late-stage deals soared to account for 39% of total equity deal value in 2024, a sharp leap from 18% in 2014. These transactions targeted startups with established revenue streams and scalable models.
Big-ticket deals, valued at over ₹500 million, made up 28% of transaction volumes but an extraordinary 90% of total deal value, signaling the increasing scale and sophistication of private market transactions.
India’s private markets continue to showcase their dual strength: long-term capital growth paired with liquidity.
Key DPI Metrics:
“As of October 21, 2024, India had over 1,51,000 registered startups, making it the world’s third-largest startup ecosystem. This thriving startup culture has birthed enough investment opportunities for fund managers to build their portfolios and give a boost to the AIF industry.”
Realized Returns in 2024
IPO Pathways in 2024:
A record-breaking 210 IPOs provided robust exit routes, surpassing combined totals for 2022 and 2023.
The surge in IPOs signals more than a strong exit environment—it reinforces investor confidence in underlying asset valuations and the scalability of portfolio companies. This coupled with the fact that 18.52% of schemes have returned 100% of capital within seven years underscores the sector’s maturity and efficiency
India’s private markets are steadily shifting the global investment narrative as a preferred investment destination, catching the attention of foreign investors and outpacing regional heavyweights like China in key metrics.
India’s PE fundraising has seen a remarkable surge relative to China over the past few years:
Healthcare Buyouts: A Sector on the Rise
India’s healthcare sector exemplifies this shift. In 2019, Indian healthcare buyout transactions accounted for less than 10% of the Asia-Pacific market, compared to China’s 40%. By 2023, Indian healthcare buyouts grew nearly 7x, becoming one-third larger than China’s in value.
PE investments hit ₹3,023 billion across 2,113 deals, reflecting a buoyant market and strong investor confidence.
Global pressures — geopolitical tensions, rising interest rates, and recession fears — slashed funding by ~63.17% in fiscal 2023, followed by another ~48.80% drop in fiscal 2024. Caution shaped capital deployment during this period.
According to GPCA, historically, lean fundraising phases lead to selective, high-quality investments that create top-performing vintage years. 2024’s constrained capital inflow positions it as a promising year for venture capital returns, as per GPCA.
The first half of fiscal 2025 reached 61.36% of the prior year’s total deal value, signaling renewed momentum and optimism in the market.
Source: GPCA
The investor profile in CAT-II funds is undergoing notable shifts, reflecting evolving trends in wealth allocation and private market participation. Here’s what the data from CAMS reveals*
Individual contributions fell from 39.49% in FY21-22 to 33.96% by September 2024, while non-individual entities like trusts and family offices increased their share from 15.35% to 22.69%, reflecting a shift toward structured wealth management in an evolving private market landscape.
Resident investors increased their share from 72.99% to 76.40%, driven by India’s expanding wealth base and confidence in private markets. Non-resident contributions dipped to 23.60%, possibly due to global competition or cautious post-pandemic strategies.
*LP contributions in CAT-II funds handled at CAMS (~250 funds). This is additional data provided by CAMS, not part of the report
“This year’s Crisil-Oister report reinforces our long-held belief that private capital is not only participating in India’s growth story but also shaping it. In fiscal 2024, private markets once again demonstrated their ability to outperform and lead through long-term growth and sectoral innovation, setting a benchmark for resilience, scale and innovation.”
CRISIL is a leading, agile and innovative global analytics company driven by its mission of making markets function better. It is India’s foremost provider of ratings, data, research, analytics and solutions with a strong track record of growth, culture of innovation, and global footprint.
It has delivered independent opinions, actionable insights, and efficient solutions to over 100,000 customers through businesses that operate from India, the US, the UK, Argentina, Poland, China, Hong Kong, UAE and Singapore.
It is majority owned by S&P Global Inc, a leading provider of transparent and independent ratings, benchmarks, analytics and data to the capital and commodity markets worldwide.
Oister is India’s Premier Alternative Assets Manager
We combine robust diligence, deep domain expertise, and an extensive network to create high-quality private market opportunities for our investors. With a digital-first approach, we ensure precision, transparency, and an unwavering focus on prioritizing our investors’ interests at every step.
We manage proprietary funds, invest in PE/VC funds and secondary opportunities, and partner with CRISIL to produce the industry’s leading annual benchmarking report on private equity and venture capital trends. With over 18 years of hands-on experience in private markets, our founding team deeply understands the ins and outs of this dynamic space. Oister bridges the gap by providing a comprehensive suite of curated, high-quality opportunities that empower qualified investors to participate meaningfully in private markets.
“If it’s on Oister, it’s a Pearl.” This guiding principle reflects our unwavering commitment to excellence and quality.
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