Chart of the week: Foreign managers see potential in India

The proportion of foreign fund managers raising India-focused closed-ended private equity vehicles is climbing.


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Strong GDP growth supported by a healthy entrepreneurial environment has made India one of the most attractive emerging economies for foreign private equity investment in recent years.

This week, CDPQ, the second largest pension fund in Canada, announced the opening of an office in New Delhi and revealed its plans to invest $150 million into renewable energy in the country over the next three to four years, as reported by Private Equity International.

It comes as India and South-East Asia-focused private equity firm Everstone Capital Partners said it had begun investing in stressed companies in India for the first time.

PEI’s Research & Analytics team have compared capital raised by foreign and domestic managers of closed-ended private equity funds focused on India to see if this trend is apparent in the fundraising figures.

In 2014, 17 percent of total capital raised for private equity vehicles investing into the region came from managers based outside of India.

A year later, this number jumped to 56 percent. US-based Sequoia Capital closed the largest India-focused vehicle in 2015, collecting $740 million for Sequoia Capital India IV. The same firm collected $920 million in January for its fifth flagship vehicle, the only India-focused fund to close so far in 2016.