Global asset managers including KKR & Co. and Blackstone Inc. are intensifying their India bets, elevating Mumbai-based executives to helm Asia strategies and signaling a dramatic shift in regional capital flows.
Seven global funds now have their Asia private equity heads or co-heads based in Mumbai, such as Blackstone’s Amit Dixit and KKR’s Gaurav Trehan—a stark contrast to five years ago when none of these roles were located in India.
Collectively, these firms oversee at least $100 billion in assets, according to Bloomberg News estimates based on public disclosures and sources familiar with the matter. Most declined to comment on the exact value of assets managed in the region.
India’s ascent reflects a broader reordering of global investment priorities. With China facing regulatory headwinds and slower growth, India’s robust economic expansion, surging deal activity, and sectoral diversity—from infrastructure to manufacturing—are drawing buyout firms to anchor their Asia strategies in the country.
“Many of the Asia-heads now have demonstrated a strong track record and portfolio performance over time and managed teams effectively for years,” said Dhiraj Poddar, co-head of Asia at TA Associates since 2022. “The Indian private equity market has matured. Deal sizes have increased, the buyout market has deepened and multiple avenues of exits have emerged over the years.”
Despite the optimism, risks remain. High company valuations and volatility among tech startups pose challenges. Additionally, Washington’s decision to double tariffs on most Indian goods to 50%—among the highest globally—adds uncertainty.
Still, global firms are expanding teams and diversifying asset classes in India. “Most global general partners’ funds are raising Asia funds ex-China and are allocating anywhere between 50%-70% to Japan and India, with the other countries including Southeast Asia making up for the rest,” said Vivek Soni, partner at EY in Mumbai.
Blackstone, with approximately $50 billion in private equity and real estate investments in India, has called the country its best investment market globally. KKR, having deployed $11 billion over two decades, is accelerating its pace. Co-founder Henry Kravis stated in 2024 that the firm plans to invest its next $10 billion in India more rapidly.
Boston-based Advent International is also leaning on its India leadership. Managing partner Shweta Jalan is spearheading the firm’s re-entry into Japan, after successfully launching Advent’s Australia and New Zealand office last year, according to a source familiar with the strategy.
Executives from Brookfield Asset Management, PAG, and TA Associates are now managing Asia or even global mandates from Mumbai, echoing similar shifts seen in global investment banks where India-based leaders have gained regional prominence.
India’s growing clout is reflected in capital flows. The country captured nearly 41% of private equity inflows into emerging and growth markets this year, surpassing China’s 34%. China’s share has steadily declined from 66% in 2018 to 44% last year, according to the Global Private Capital Association.
Three structural shifts are accelerating India’s buyout momentum:
- Family-owned businesses increasingly willing to cede majority control
- Local capital markets capable of absorbing multi-billion-dollar deals
- Rise in domestic acquisitions by Indian companies
“Due to increased local institutional and retail participation in public markets, the country has been a leader globally for exits, which is inducing additional new investment,” said Jeff Schlapinski, managing director of research at the Global Private Capital Association.
However, the tech sector’s implosion has left scars. Global investors like Prosus NV, General Atlantic, and Softbank Group Corp. have faced setbacks as startups such as Byju’s, PharmEasy, and Oyo Hotels saw steep devaluations or collapse after a funding boom that peaked in early 2022.
US tariffs are another headwind. “Tariffs are causing uncertainty in the short term for sure. We may see capital deployment slow down over the next 6-12 months, especially in sectors like pharmaceuticals, automotive components, technology services and other export oriented sectors,” EY’s Soni noted.
For now, the momentum holds. “Geopolitics can change tomorrow, but the fact is that India has delivered consistent returns over the last several years which explains why it remains a significant focus for Asia and global funds,” said TA Associates’ Poddar.
