Private Equity (PE) has emerged as a major force in global capital markets, with trillions of dollars managed across buyouts, growth capital, and venture investments. While developed markets like the U.S. have long dominated the industry, emerging economies such as India are rapidly catching up, offering lucrative opportunities and evolving regulatory frameworks. This article explores the PE landscape with a special focus on Assets Under Management (AUMs), returns across decades, and contributor profiles (GPs and LPs).

Private Equity AUM: Global and India

Global AUM Snapshot (2023-2024)

• Total Global PE AUM: $7.6 trillion (as of Q4 2023, Preqin)
  • Dry Powder (unallocated capital): $2.4 trillion
  • Breakdown:
    • Buyout: $3.1 trillion
    • Growth: $1.2 trillion
    • Venture Capital: $1.0 trillion
    • Other Strategies (Distressed, Turnaround): $2.3 trillion
• Top PE Markets:
  • United States (~60% of global AUM)
  • Europe (~20%)
  • Asia-Pacific (~15%)

India AUM Overview

• Total PE/VC AUM in India: ~$75 billion (as of 2023, IVCA/EY)
  • PE-focused funds: ~$50 billion
  • VC-focused funds: ~$25 billion
  • AUM growth CAGR (2013–2023): ~14–16%
• Dry Powder in India: ~$12–15 billion

Key Indian PE Players: True North, ChrysCapital, Kedaara Capital, Multiples PE, Everstone Capital

Private Equity Returns: Historical Perspective

Global PE Returns by Decade

Top Quartile Buyout Funds: Typically deliver net IRRs of 18–25%.

India-Focused Fund Returns

Exit Trends (India):

• Total exits in 2023: ~$28 billion
• Notable IPO exits: FirstCry, Mamaearth, NSE (planned)
• Secondary and strategic sales dominate

Private Equity Contributors: GPs and LPs

General Partners (GPs) – Investment Managers

These are the active managers of PE funds. They raise capital, source deals, manage portfolio companies, and realize returns. Globally, many large GPs operate across regions and fund types.

Top Global GPs:

• Blackstone ($1 trillion+ AUM overall; ~$300B in PE)
• KKR
• Carlyle Group
• Apollo Global Management
• TPG Capital

Top Indian GPs:

• ChrysCapital
• True North
• Everstone
• Multiples PE
• Kedaara Capital

Limited Partners (LPs) – Capital Providers

LPs are passive investors who commit capital to PE funds. They receive a share of profits (net of fees) but do not manage fund operations.

Key Global LPs:

• Pension Funds: CalPERS, CPPIB, GIC (Singapore)
• Sovereign Wealth Funds: ADIA, Temasek, Mubadala
• Endowments: Yale, Harvard, Princeton
• Insurance Cos and HNIs

Key LP Trends:

• Allocation to PE has increased from 8–10% (2005) to ~15–20% in 2023 in diversified portfolios
• Asia-Pacific LPs increasingly active (e.g., India’s NIIF, SIDBI)

A Shifting Balance of Power

Private Equity continues to grow both as an asset class and a strategic growth engine for businesses worldwide. While the U.S. remains the epicenter, India’s strong GDP growth, digital economy, and maturing startup ecosystem are turning it into a favored investment destination for global LPs and GPs alike.

Key Takeaways:

• Global PE AUM stands at ~$7.6 trillion; India at ~$75 billion
• Returns have remained strong over decades, particularly for top quartile funds
• India’s private equity ecosystem is maturing with rising participation from domestic and foreign LPs

As India gears up for another growth decade, the private equity story here is only getting started.

Disclaimer

The information presented in this article has been compiled from a variety of publicly available sources including Preqin, IVCA, EY, PitchBook, and media reports. While every effort has been made to ensure accuracy and relevance, the data points, figures, and returns mentioned are subject to change and may vary depending on the source and reporting date. Readers are strongly encouraged to verify facts and conduct their own due diligence before relying on any statistics or insights provided herein. This article is for informational purposes only and does not constitute financial or investment advice.