TLDR:
- Preqin and IVCA launched a performance benchmark for India’s Alternative Investment Funds to improve transparency.
- India-focused private capital AUM has doubled in five years to $127.1bn, indicating growing interest in the market.
Preqin, in partnership with the Indian Venture and Alternate Capital Association (IVCA), introduced a new performance benchmark for India’s Alternative Investment Funds (AIFs), aiming to enhance transparency in the country’s alternative markets. The benchmark allows fund managers to compare their performance with competitors and provides valuable insights for investors into a manager’s track record. With the increasing growth in India-focused alternative assets under management (AUM), access to timely data becomes crucial for performance benchmarking analysis as market competition rises.
According to Preqin data, India-focused private capital AUM has doubled over five years to $127.1bn, illustrating the growing interest in the market. The trend is expected to continue, with a significant number of funds and fund managers likely to allocate in India in the coming years. Preqin insights reveal that 48% of surveyed alternative investors view India as the most promising emerging market, indicating a positive outlook for the industry.
The latest iteration of the Preqin and IVCA benchmark covers 474 schemes, showing a 35% increase from the previous year. Category I AIFs, primarily venture capital funds, continue to outperform the Indian public market index, MSCI India TR, reflecting the strength of this asset class in the Indian alternative assets space. Venture capital remains the best-performing asset class, with a median net Internal Rate of Return of 21.6% for India-focused funds with vintages between 2013 and 2020.
With the historically opaque nature of private markets, Preqin’s benchmarks provide investors, fund managers, and service providers with independent, reliable, and transparent performance data. Offering one of the largest collections of alternatives benchmarks, Preqin aims to support decision-making in the industry and promote greater clarity in funds’ performance.
