Rising Momentum in Asia Pacific Private Equity with India at the Forefront
Asia Pacific's economy is set for strong growth, doubling consumption by 2030. Private equity remains underrepresented, with India emerging as a key investment hub across diverse sectors.
FREMONT CA: As a highly diversified region, the Asia-Pacific is poised to be a leading driver of global economic growth in the coming years. The area is expected to contribute substantially to future expansion, with consumer spending projected to be $36.6 trillion by 2030—more than doubling within a decade.
This anticipated growth is expected to significantly benefit consumer-facing companies, with a corresponding expansion in business-to-business services. As a result, financial investors, including private equity managers, stand to gain from the resulting positive momentum, which may generate diverse investment opportunities.
The Asia Pacific private equity market remains underrepresented relative to global trends, presenting substantial opportunities for growth.
India’s Growing Influence in Private Equity
India is increasingly shaping the region’s private equity landscape. In 2023, the country accounted for approximately 20 percent of all private equity and venture capital investments in the Asia Pacific region, up from 15 percent in 2018. This upward trajectory highlights India’s growing prominence as an investment destination.
Evolving Trends in India's Private Markets
India’s private markets are shifting significantly, with private equity increasingly dominating transactions exceeding $100 million. In 2021, venture capital and growth equity investments accounted for 52 percent of such deals. However, by 2023, private equity’s share had surged to 85 percent, reflecting a strategic shift among investors toward private equity.
Sectoral Focus and Investment Trends
Private equity investments in India remain concentrated in high-growth sectors, including technology services, healthcare, advanced manufacturing, infrastructure, and renewable energy. Additionally, global supply chain diversification is poised to benefit Indian manufacturers. As some countries encourage reshoring and nearshoring, India’s pharmaceutical, electronics, and chemical industries stand to gain, leveraging their skilled workforce and competitive positioning in global markets.
The Asia Pacific private equity landscape is highly diverse, necessitating a selective and diversified investment approach. Growth opportunities exist across various sectors, particularly healthcare, technology, and technology services. As the market matures, investment teams shift their focus beyond deal origination, prioritizing portfolio development and value creation within their invested companies.
