Availability of domestic capital is increasing in India for both private equity (PE) and venture capital (VC) firms, as a new pool of home-grown limited partners (LP) are looking to bet big on the sector keeping the country’s long-term growth story in mind.
Even as the exact breakup of foreign and domestic LPs in the $10.5 billion capital raised by India-focused PE-VC firms last year could not be ascertained, experts say the share of local capital could be around 40%, and growing. For certain Alternative Investment Funds (AIF) this could be as high as 100%, but it could be much less for foreign PE funds focussed on India.