麦肯锡-印度私募市场：全球有限合伙人视角 Indias private markets The global limited partner view

Mcsey

&company

PrivateCapitalPractice

India’sprivatemarkets:

Thegloballimitedpartnerview

TheprivatealternativesmarketisincreasinglyimportanttoIndia’seconomicgrowth.Oursurveyfindslimitedpartnersarebullishonthecountry,yetmorecanbedonetogrowinvestormomentum.

byPeeyushDalmiaandVivekPanditwithDebanwitaRoy

March2026

InvestmentactivityinprivatemarketsacrossAsia–

Pacifichasgenerallycontractedinrecentyears,pressuredbyeverythingfromsignificantgeopoliticalshiftstothe

reorientationofglobalsupplychainsandforeignexchangevolatility.However,Indiahasemergedasanincreasingly

attractivedestinationforlimitedpartner(LP)allocators.ItsregionalweighthasincreasedamidChina’sslowdown,andimprovedperformancehasseeninvestmentactivityfromprivateequityandventurecapitaldealsexpand1.6-foldto$207billionbetween2016–20and2021–25.1Exitsforthesameperiodmorethandoubledtoaround$120billion.2

YetIndiaalsofaceschallenges.Whileitsregionalstanding

hasimproved,itscapitalpoolremainsnarrow.Private-capitalintensityrelativetoGDPhasstagnated:Deploymentisheavilyconcentratedinalimitedsetofsectors,whileothersectors

centraltoIndia’sgrowthambitionsdonotattractmeaningful

private-marketinvestment.Thisconcentrationextendsto

fundraisingamongfundmanagers.Whilefundraisingby

domesticprivateequityfirmshasincreased,capitalremainsskewed,akintoawinner-take-alldynamic:Thesixlargest

generalpartners(GPs)accountedfor64percentofthetotalof$13.68billionraisedbetween2022and2024,upfrom

59percentfrom2016to2018.3

Addressingstructuralconstraintslimitingthebreadthand

depthofIndia’sprivatemarketscouldcreateadditional

investableopportunitiesandenableamorediversifiedcapitalpoolacrosssectors,assetclasses,andfundmanagers.

Tobetterunderstandthecountry’sinvestmentdynamicsandmeasuresthatbroadenitsappeal,wesurveyedmorethan50globalLPsabouttheirperceptions,preferences,andanticipatedactivitiesinIndia(seesidebar,“Aboutourresearch”).4Here’swhatwefound.

1Preqin,accessedJanuary31,2026;S&PCapitalIQ,accessedJanuary31,2026;VentureIntelligence,accessedJanuary31,2026;McKinseyanalysis.

2VentureIntelligence,accessedJanuary31,2026,andMcKinseyanalysis.

3Preqin,accessedJanuary31,2025,andMcKinseyanalysis.

4McKinsey-IVCALPSurvey,November2025.

Aboutourresearch

McKinseycollaboratedwiththeIndianVentureandAlternateCapitalAssociation(IVCA)toconductasurveyoflimited

partners(LPs)aboutIndia’sprivatemarkets.ThesurveyleveragedtheIVCALPCouncilnetworktogatherinsightsfrommorethan50LPsonthecurrentstateofprivate-

marketinvestmentinthecountryandfutureexpectations.

RespondentswerelocatedinNorthAmerica(19respondents),Asia–Pacific(14),India(seven),Europe(six),andtheMiddle

East(four).Some40percentrepresentedfundsoffunds,

18percentfamilyoffices,14percentpensionfunds,12percentendowmentsandfoundations,6percentdevelopmentfinanceinstitutions,6percentinsurers,and4percentotherinstitutions.Thethreemostprevalentallocationchannelsusedby

respondentsweremultiplechannels(32percent),globalfunds(28percent),andIndia-dedicatedfunds(20percent),followedbyAsiaregionalfundsanddirectinvestments.

India’sprivatemarkets:Thegloballimitedpartnerview2

India’sprivatemarkets:Thegloballimitedpartnerview3

1.India’sprivatemarketsoutperformregionally

Afterattractingjust$6.4billionininvestmentin2006,India’sprivatemarketsaretodaycentraltothecountry’seconomic

growth.5Private-capitaldeploymentacrossassetclasses

was$44billionin2025,withitssharerelativetothecountry’sGDPmorethandoublingto1.42percentinthepastdecade

comparedwith0.68percentfrom2006to2015.6

IndiahasalsoemergedasarelativeoutperformerinAsia–

Pacific’scontractingprivate-marketslandscape.7Whilethe

countryhasnotbeenimmunetotheregionalslowdown—

private-capitaldeploymenthasplateauedsincepeaking

at$74billionin2021—India’stotalshareofAsia–Pacific

privateequity(PE)andventurecapital(VC)deploymenthas

increasedfromaround12percentbetween2015and2019

toabout21percentfrom2020to2024(Exhibit1).8Andits

attractivenessasadestinationforalternativesinvestors

seekingdiversifiedlong-termgrowthmayfurtherincrease;

India’sshareofglobalGDPisprojectedtorisefrom3.7percentin2025to7.0percentby2050.9

5Preqin,accessedJanuary31,2026;S&PCapitalIQ,accessedJanuary31,2026;VentureIntelligence,accessedJanuary31,2026;McKinseyanalysis.

6Thesedatadonotincludeprivatecreditandsecondaries.OxfordEconomics,

accessedJanuary31,2026;Preqin,accessedJanuary31,2026;S&PCapitalIQ,accessedJanuary31,2026;VentureIntelligence,accessedJanuary31,2026;

McKinseyanalysis.

7PitchBook,accessedJanuary31,2025;Preqin,accessedJanuary31,2025;S&PCapitalIQ,accessedJanuary31,2025;VentureIntelligence,accessedJanuary31,2025;McKinseyanalysis.

8Preqin,accessedJanuary31,2026;S&PCapitalIQ,accessedJanuary31,2026;VentureIntelligence,accessedJanuary31,2026;McKinseyanalysis.

9OxfordEconomics,accessedJanuary31,2026.

Exhibit1

India’sdeploymenthasincreasedtorepresentafifthofAsia–Pacific.

ShareofAsia–Pacificprivateequity(PE)andventurecapital(VC)deployment,1%

xxTotaldeployment,$billion302

22

167

19

18

81

82

India

RestofAsia–Pacific

128

11

89

188

22

78

208

13

87

153

22

78

167

21

79

192

10

90

130

8

92

0

2015

2020

2024

199

78

PEandVCdeploymentbycountry,%

GreaterChina2SouthKoreaAustraliaandNewZealandSoutheastAsia3JapanIndia

100%in

$billion

55

3710

1098

11713

712

21

2015–19

2020–24

824

1,008

Note:n=54,762dealsclosedandindefinitiveagreements;figuresmaynotsumto100%,becauseofrounding.

1Includesbuyout,expansionandgrowth,privateinvestmentinpublicequity,seedandR&D,start-upandearlystage,late-stageVC,andmezzanineandpre-IPO.2GreaterChinaincludesMainlandChina,HongKong,Macau,andTaiwan.

3IncludesBrunei,Cambodia,Fiji,Indonesia,Laos,Malaysia,Myanmar,Philippines,Singapore,Thailand,andVietnam.

Source:S&PCapitalIQ;PitchBook;VentureIntelligence;Preqin;McKinseyanalysis

McKinsey&Company

India’sprivatemarkets:Thegloballimitedpartnerview4

LimitedpartnersareincreasinglyprioritizingIndia

IndiaaccountsformorethanathirdofallAsia–Pacific

investmentexposureamongsurveyedLPs.Europe-based

LPsindicatedthehighestexposure(around60percent),whileexposureamongthosebasedintheMiddleEast,Asia–Pacific,andNorthAmericawasabout20to30percentoftheirtotal

Asia–Pacificcapital(Exhibit2).

Exhibit2

AboutathirdofsurveyedLPs’exposuretoAsia–PacificisrepresentedbyIndia.

21

25

3635

58

75

79

75

6465

42

25

TotalIndiaEuropeMiddleAsia–PacificNorth

EastAmerica

RestofAsia–PacificIndia

IndiaexposurerelativetorestofAsia–Pacific,1%

IndiaexposurerelativetorestofAsia–Pacific,bylocationofLP,%

Question:HowmuchisyourIndiaallocationasashareofAsia–Pacificallocation(optionranges:0–10%,10–20%,20–30%,30–40%,40–50%,and>50%)?1CalculatedbyLPlocationastheweightedaverageofrespondentselectionsacrossIndiaallocationranges(rangemidpointsapplied);restofAsia–Pacific

representstheresidualto100%.

Source:McKinsey-IVCALPsurvey,Nov2025

McKinsey&Company

India’sprivatemarkets:Thegloballimitedpartnerview5

Indiawasthemostattractiveprivatemarketdestinationin

Asia-Pacific,with31percentrankingitfirstand76percent

placingitwithintheirtopthreechoices(Exhibit3).More

nuanceemergesbyLPsize,withJapanpreferredbyLPswithmorethan$25billioninassetsundermanagement(AUM).

China’srankingwaspolarized:17percentrankeditfirst,but

66percentplaceditfifthorsixthrelativetootherAsia-Pacificmarkets.10Thesebroadallocationpreferencesalsoreflect

howmarketshaveshiftedinthepastdecade.Forexample,

withinAsia–Pacific,IndiaandJapan’sjointshareofPEand

VCinvestmentincreasedto34percentfor2020to2024from19percentin2015to2019.Forthesameperiod,China’ssharedeclinedto37percentfrom55percent.

Exhibit3

LimitedpartnersrankIndiaastheirtopinvestmentdestinationinAsia–Pacifictoday.

MostattractiveAPACdestinationsforprivatemarketallocation,%ofrespondents

Investmentdestination

India

Japan

SoutheastAsia

AustraliaandNewZealand

SouthKorea

China

Rank,1

LPAUM

<$25billion

1

3

2

6

4

4

Rank,

LPAUM

≥$25billion

2

1

5

3

4

6

21

14

1743

36

34

Rank1Rank2Rank3

3129

1676

59

14

12

7

17

24

12

14

29

5

1

2

3

4

5

6

12

52

Overallrank

26

Question:RanktheinvestmentdestinationswithinAPACbasedonattractivenessforprivateequity(1=mostattractive;6=leastattractive).1SouthKoreaandChinaarejointlyrankedbasedonidenticalaveragescores;subsequentrankskippedaccordingly.

Source:McKinsey-IVCALPsurvey,Nov2025

McKinsey&Company

10McKinsey-IVCALPSurvey,November2025.

2.InvestorshavetwolensesonIndia

TwoviewsofIndia’sattractivenessasaninvestmentdestinationhaveemerged.High-allocatorLPs—majorglobalinvestorscharacterized

byaproactivestancetoAsianexposureforgrowthanddiversification,

sustainedallocations,higherfutureallocationintent,activeco-investmentparticipationwithGPpartners,andmorefrequenton-groundvisits—tendtoviewthecountryasacomplex,yetscalable,opportunity-richprivate-

marketsdestination.Moderateallocators,whichcarefullyweighknown

opportunitiesathomeagainstemergingmarketrisks,episodicexposureandtrackrecords,andmoremutedallocationintent,viewIndiaasabrightspotforGDPgrowthsupportedbyareform-orientedgovernment.Yet

whiletheyfeelaccessingIndia’sopportunitiesremainshighlycontestedandrichlyvalued,itrequiresalookbeyondthemacrocontextandthey

approachthecountrywithgreatercaution.11AsonegroupbetsonIndia’sfuture,theotherismoreanchoredonitspastrecord.

Indiaisacomplexenvironment,wheregranularopportunityidentificationoftenmattersfarmorethanmacrobets,withopposingviewson

whetherIndia’sopportunitiesoutweighitsrisks.Consistentwiththose

attributes,respondentsprovidedinsightsintomeasuresinvestors

andpolicymakerscantaketoimprovethecountry’sattractivenessas

aninvestmentdestination.Thesurveycomparedhighandmoderate

allocatorsacrossthreeareas:theirviewsofIndia’smacroenvironment,PEmarketfundamentals,andprivate-marketmanagerqualityandselectionconsiderations.

ThelimitedpartnerviewofIndia’smacroenvironment

BothhighandmoderateallocatorsbroadlyagreeonIndia’smacro

strengths,suchasitspoliticalandeconomicstability,andonitskey

challenges,includingcurrencyrisk,acomplicatedtaxregime,and

thedifficultyofdoingbusinessandcontractenforceability.However,

theydivergeintheirdegreeofconfidenceonfactorssuchasquality

ofgovernance,regulatoryconsistency,andforeigninvestmentpolicy

(Exhibit4),whichlikelydrivesadifferentviewofmacrorisksassociatedwithin-countryinvestmentsand,subsequently,capitalallocation

decisions.

11ModerateallocatorsaredefinedasLPsallocating0.0to30percentoftheirtotal

Indiaallocationtoprivatemarkets,whilehighallocatorsallocate70to100percent.McKinsey-IVCALPSurvey,November2025..

Exhibit4

High-andmoderate-allocatorLPsdi仟erintheirassessmentofIndia’smacrofactors.

India’sratingbylimitedpartnersonmacrofactorsvsothercountries,averagescoreonascaleof1–10

Ratingrelativetoothercountries

RelativelybetterRelativelyworse

Similar

Highallocators1

Allocators’view

▲Consistentlystrong●ConsistentlyneutralvConsistentlyweak◆Diverging

Moderateallocators1

Politicalstability

Economicstability(currency,macroeconomicgrowth)

Geopoliticalrisk

InfiationPotentialincreaseintari仟sfrom

exportmarketsRegulatoryconsistencyorcertainty

Ruleoflaworlegalsupport

Governance

Regulatoryandinvestmentpolicysupportforforeigninvestors

IP2rightsprotectionand enforcementTransparencyofreporting Maintainingcompliance Contractenforceability EaseofdoingbusinessCurrencyrisk

Taxregime

Valuations

6.8

6.3

6.0

5.6

5.4

5.4

5.4

5.2

5.2

5.0

5.0

4.9

4.6

4.4

4.4

4.3

3.4

Politicalstability

Economicstability(currency,macroeconomicgrowth)

GeopoliticalriskPotentialincreaseintari仟s fromexportmarketsTransparencyofreporting

Infiation

IPrightsprotectionandenforcement

MaintainingcomplianceRuleoflaworlegalsupport

Contractenforceability

Regulatoryconsistencyorcertainty

ValuationsGovernanceTaxregime

Easeofdoingbusiness

RegulatoryandinvestmentpolicysupportforforeigninvestorsCurrencyrisk

6.5

5.9

5.5

5.5

5.0

4.9

4.9

4.9

4.9

4.8

4.6

4.6

4.5

4.5

4.2

4.2

3.9

Question:Relativetoothermarketswhereyouinvest,howdoyourateIndiaonthefollowingfactors?

1HighallocatorsaredefinedasLPsallocating70–100%oftheirtotalIndiaalternativesallocationtoprivatemarkets,whilemoderateallocatorsallocate0–30%.2Intellectualproperty.

Source:McKinsey-IVCALPsurvey,Nov2025

India’sprivatemarkets:Thegloballimitedpartnerview6

McKinsey&Company

AssessingthestructuralattractivenessofIndia’sprivateequitymarket

Highandmoderateallocatorsbroadlyalignonthestructural

driversofIndia’sprivatemarkets,suchasentrepreneurial

talent,economicgrowth,anddomesticmanufacturingand

consumption.Highallocatorsviewexitpotential,availability

ofqualitytargets,anddepthofcapitalmarketsasrelative

strengths,reflectingconfidenceinIndia’sabilitytosupportfullinvestmentcycles,butmoderateallocatorsaremorecautious,scoringthesefactorslowerand,insomecases,weakerthan

othermarkets(Exhibit5).Bothhighandmoderateallocators

rateeaseofaccess—drivenbyvisaandcapitalcontrol

considerations—andvaluationsasweaknessescomparedwithothermarkets,explainingtherelativelydefensiveorcautious

standseveralallocatorstaketowardIndia.

Exhibit5

Generally,LPsfavorablyassessthestructuralgrowthdriversofIndia’sprivateequitymarket.

India’sratingbylimitedpartnersonPEgrowthdriversvsothercountries,averagescoreonascaleof1–10

Ratingrelativetoothercountries

RelativelybetterRelativelyworse

Similar

Highallocators1

Moderateallocators1

Entrepreneurialtalent

IndiaGDPandeconomicgrowth

Exitpotential

Availabilityofqualitytargets

Domesticconsumption

Depthofcapitalmarkets

Exportpotential

Domesticmanufacturing

(“madeinIndia”)

Easeofaccess2

Attractivevaluations

7.6

7.6

6.96.8

6.86.56.05.95.0

3.3

Entrepreneurialtalent

IndiaGDPandeconomicgrowth

Domesticconsumption

Domesticmanufacturing

(“madeinIndia”)

Exportpotential

Availabilityofqualitytargets

Depthofcapitalmarkets

Attractivevaluations

Easeofaccess2

Exitpotential

7.37.06.66.1

5.85.45.34.84.6

4.6

Question:Relativetoothermarketswhereyouinvest,howdoyourateIndiaonthefollowingfactors?

1HighallocatorsaredefinedasLPsallocating70–100%oftheirtotalIndiaalternativesallocationtoprivatemarkets,whilemoderateallocatorsallocate0–30%.2Includesvisaregimesandcapitalcontrols.

Source:McKinsey-IVCALPsurvey,Nov2025

India’sprivatemarkets:Thegloballimitedpartnerview7

McKinsey&Company

Private-marketmanagerallocationconsiderationsoflimitedpartners

High-allocatorLPsprioritizedeploymentopportunities(qualityofdealpipelineandflow),risk-adjustedinternalratesofreturn(IRR),andmanager(team)qualityasdifferentiatorswhen

consideringprivate-marketmanagerallocation.Moderate

allocatorsfocusonalongerchecklist,includingexitrecordasmeasuredbydistributedtopaid-incapital(DPI),governance

anddisclosures,risk-adjustedIRR,andmanagerfeesand

costsastheirdominantmanagerselectioncriteria(Exhibit6).ThesignificantdifferenceinhowhighandmoderateallocatorsweightmanagerselectioncriteriamayexplainLPdiligence

emphasis:Whilehigh-allocatorLPsseektounderstanddriversofreturnoutperformance,moderateallocatorsfocusonrisk,

liquidity,andgovernance.

Exhibit6

Highandmoderateallocatorsfocusondi仟erentfactorswhenconsideringprivatemarketmanagerselectioncriteriaforIndia.

TopallocationconsiderationsforIndianprivatemarketmanagerselectionamonglimitedpartners,numberofmentionsoftopfactorisscaledto1001

Moderateallocators2

Highallocators2

100

73

55

45

45

27

Exitrecord (distributedtopaid-incapital)

Governanceanddisclosures

Risk-adjustedIRR

Managementfeesorcosts

Deploymentopportunities

Managerquality

100

79

63

26

26

11

Deploymentopportunities

Risk-adjustedIRR

Managerquality

Exitrecord (distributedtopaid-incapital)

Governanceanddisclosures

Managementfeesorcosts

Question:Whatarethetop3reasonsforhighervsmoderateallocationtoprivatemarketsvspublicmarkets?

1“Numberofmentions”foreachfactorindicateshowmanytimeseachfactorwascitedamongthetopthreeconsiderationsforprivatemarketallocation.

2HighallocatorsaredefinedasLPsallocating70–100%oftheirtotalIndiaalternativesallocationtoprivatemarkets,whilemoderateallocatorsallocate0–30%.Source:McKinsey-IVCALPsurvey,Nov2025

India’sprivatemarkets:Thegloballimitedpartnerview8

McKinsey&Company

3.InvestorperceptionsoftheIndiaopportunity

HowdoLPsviewtheopportunitypresentedbyIndia?It

depends.WhileparticipationinIndiahasbecomemore

intentional,itisdeliberateandriskmanaged.LPpreferences

areconsistentwithhistoricaldeploymenttrendsaroundassetclass,strategy,sector,andco-investmentchoices,andare

designedtomitigateperceivedmacroandlocalprivate-marketrisksandaccessopportunities.Oursurveyexaminedthese

elementsindepth,aswellasattitudestowardallocationstoIndia-basedgeneralpartners(GPs).

AmongIndia’salternativeassetclasses,privatemarketsarefavored

SurveyedLPsallocate64percentoftheirIndiaalternatives

exposuretoprivatemarkets,whicharefavoredbyinvestors

fromallgeographies:LPsdomiciledinEuropeallocate95

percenttoprivatemarkets,whileLPsintheMiddleEast

allocate73percent,thoseinIndiaallocate71percent,those

inAsia–Pacificallocate60percent,andLPsinNorthAmericaallocate51percent.12ThereismorevariationamongLP

institutions,withfundsoffundsheavilyweightedtowardprivatealternativesandpensionfundspreferringpublicalternatives(Exhibit7).

12McKinsey-IVCALPSurvey,November2025.

Exhibit7

India’sprivatemarketsarefavoredacrossLPtypes.

18

36353538

56

86

82

64656562

44

14

IndiaallocationbetweenprivateandpublicalternativesbyLPtype,%

Indiaallocation

betweenprivateandpublicalternatives,1%

FamilyoficeEndowmentand

foundation

InsurerDevelopmentfinance

institution

TotalFundsof

funds

PrivatemarketsPublicmarkets

Pensionfund

Question:What%ofyourIndiaallocationisinprivatemarkets(optionranges:0–10%,10–20%,20–30%,30–40%,40–50%,and>50%)?

1CalculatedforeachLPtypeastheweightedaverageofrespondentselectionsacrossprivatemarketsallocationranges(rangemidpointsapplied);publicmarketsallocationrepresentstheresidualto100%.

Source:McKinsey-IVCALPsurvey,Nov2025

India’sprivatemarkets:Thegloballimitedpartnerview9

McKinsey&Company

InvestorsexpectbuyoutandgrowthstrategiestodominateAstheindustrymatures,investorsincreasinglyprefer

historicallysuccessfulstrategieswithhigherpersistence.

LPsindicateapreferenceforbuyoutandgrowthstrategies

overthenextfiveyears,whileseveralotherstrategies,such

asVC,remainunderstrongconsideration.Controlinbuyoutsprovidesgreaterinfluenceovervaluecreationandexittiming,whichhelpsmitigateexitrisk—akeyconcernofmoderate

allocators.Earlier-stagestrategies,however,seerelatively

lowerpreference,reflectingperceptionsofmarketsaturation,meetingpowerlawreturnsthatjustifyrisk,andinachieving

timelypublicmarketexits(Exhibit8).

Exhibit8

BuyoutandgrowthstrategiesfindfavorwithsurveyedLPs.

LPinterestbyprivateequitystrategyinIndiaoverthenext5years,averagescoreonascaleof1–10Low=1□High=10

7.8

7.7

6.4

5.3

Buyout

Growthequity

Venture

Seed

1

Question:HowenthusiasticareyouaboutthefollowingstrategiesinIndiaoverthenext5years?

Source:McKinsey-IVCALPsurvey,Nov2025

India’sprivatemarkets:Thegloballimitedpartnerview10

McKinsey&Company

Investmentisconcentratedinscalableandrelativelydefensivedemand-drivenindustries

Sectorpreferencesfollowsimilarlogic.LPstilttowardexport-oriented,consumption-led,andtalent-backedexportsectorssuchaspharmaceuticals,IT,andfinancialservicesratherthansectorsmoreexposedtoregulatorycomplexity,highcapital

investment,andexecutionandtimingrisks.Thispatternis

remarkablyconsistentacrossbuyout,growth,andventure

strategies,withthesamecoresectorsemergingaspreferred

areasofallocation(Exhibit9).Almostthree-quartersofPE

capitalinIndiawasconcentratedacrossfivecoresectorsfrom2021to2025:technology(29percent),financialservices(15

percent),ITandITservices(13percent),pharmaceuticalsandhealthcare(10percent),andconsumergoods(6percent).13LPinterestisexpectedtoremainfocusedonsectorsthatactas

naturalhedgesagainstmacrorisksinthenextfiveyears,whichincludesrisksandopportunitiesrelatedtoAIasinvestorsseekmoredigitalinfrastructureopportunitiesandre-ratetheIT

servicesindustry.Notably,coremanufacturing,agricultural,construction,andmetalsandminingsectorssolicitmuted

interestdespitegrowth.

13Preqin,accessedJanuary31,2026;S&PCapitalIQ,accessedJanuary31,2026;VentureIntelligence,accessedJanuary31,2026;McKinseyanalysis.

Exhibit9

Limitedpartnersectorpreferencesremainconsistentacrossstrategies.

LPinterestbysectorandstrategyinIndiaoverthenext5years,averagescoreonascaleof1to10

Low=1□High=10

BuyoutGrowthequityVenture

8.2

7.9

7.7

7.5

6.7

6.2

6.0

5.8

5.9

5.1

5.1

5.1

4.0

7.7

8.2

7.7

7.5

6.9

6.1

6.6

6.0

6.3

5.3

5.4

4.7

4.2

Pharmaandhealthcare

Newtechnology

Financialservices

Consumergoods

ITandITservices

Travel,transport,andlogistics

Machineryand

industrialgoods

Mediaandtelecommunications

Energyandutilities(inclrenewables)

Automobileandcomponents

Engineeringandconstruction

Agriculture

Metals,mining,andmaterials

8.2

7.8

7.6

7.6

7.1

6.3

6.1

6.1

5.8

5.3

5.2

4.8

4.0

Question:HowenthusiasticareyouaboutthefollowingsectorsinIndiaoverthenext5years?

Source:McKinsey-IVCALPsurvey,Nov2025

India’sprivatemarkets:Thegloballimitedpartnerview11

McKinsey&Company

Theappetiteforco-investmentishigh

Co-investmenthasbecomeapopularpricingfeatureforLPs.Inadditiontoofferingfavorableeconomics,itallowsLPsto

expresssectorpreferencesthatmitigateperceivedmacroandprivate-marketrisksinIndia.Co-investmentparticipation—

whichwasnegligibletwodecadesago—hasgrownto

accountforabout25to28percentofdeploymentvalueand

20percentofdeploymentvolumeoverthepastfiveyears.

Historically,co-investmentactivityhasalsobeenconcentratedinthesamefivecoresectors(Exhibit10).Thepreferred

co-investmentstrategyislargelybuyout—whichprovides

greatercontrolonexittiming—whileco-investmentsectors

areskewedtowardthosethatarecurrencyandinflation

hedged,suchaspharmaceuticals,financialservices,andIT

services.Some60percentofLPssurveyedhaveparticipatedinco-investments,with54percentofthoseLPsreporting

outperformancerelativetounderlyingfundinvestmentsand

another42percentsayingtheperformanceofco-investmentswasonparwithfundinvestments.Just4percentofLPs

undertakingco-investmentsreportedunderperformance.14

LPsnotethatIndianGPsprefertomaintainfeepricingin

exchangeforgenerousco-investmentopportunitiesthatallowlargerLPstodoubledownonlargeandattractiveexposures.

14McKinsey-IVCALPSurvey,November2025.

Exhibit10

Limitedpartnerco-investmentsaccountfor25percentoftotalIndiadeployment,withhighsectorconcentration.

PEdeployment1inIndiabyinvestortype,%

31

15

10

9

8

28

Newtechnology

Financialservices

Consumergoods

ITandITservices

Pharmaandhealthcare

Other3

LPco-investment2bysectorinIndia,2021–25,%

72%

oftotal

FundmanagerorGPLPco-investment2100%=$90billion$158billion

28

25

75

72

2016–202021–25

1Includesbuyout,privateinvestmentinprivateequity,growthcapital,turnaround,andmezzanineandpre-IPO.Venturecapitalisnotincluded.

2StrategicmakesupasmallsectionoftheoveralldeploymentandisincludedunderLPco-investment.

3Otherincludesmediaandtelecom;travel,transport,andlogistics;machineryandindustrialgoods;energyandutilities;engineeringandconstruction;automobileandcomponents;agriculture;andmetals,mini