Foundation PE is strategically increasing its focus on India as the secondary market gains significant traction. Several factors contribute to this momentum, positioning India as an attractive destination for secondary investments.

One primary driver is the increasing emphasis on exits and returns among Indian General Partners (GPs). As fund managers prepare for their next fundraising cycle, they are placing greater importance on demonstrating Distributions to Paid-In capital (DPI). Regulatory pushes encouraging funds to adhere to their fund life commitments, as outlined in their private placement memorandums, further contribute to the rise of secondary market activity.

India's IPO market has demonstrated strong momentum, emerging as a key exit route for PE investors. KPMG's Pulse of Private Equity Q3 2025 report highlights the exceptional performance of India's stock markets, creating a favorable environment for IPO activity. Companies in high-demand sectors have achieved impressive exit-day multiples, often surpassing those in other regions. This robust capital market encourages PE firms to pursue IPO exits in India, especially for companies with strong domestic roots. A strong base of domestic institutional investors, with a considerable appetite for PE-backed assets, further supports this trend. In 2025, over 100 companies raised approximately $22 billion through IPOs, with 70% of listings achieving positive market returns on their debut.

The improving IPO environment coincides with short-term softness in private equity investment in India due to geopolitical and trade-related uncertainties. Nevertheless, India remains an appealing PE destination, underpinned by strong macroeconomic fundamentals, a large working-age population, and increasing domestic consumption.

Data from the Global Private Capital Association indicates that India saw $11.5 billion in realized capital across 109 exits in the first half of 2024. Secondary exits accounted for $2.2 billion across 23 deals, compared to $8.1 billion from IPO exits and $1.1 billion from strategic sales. A notable secondary deal was ChrysCapital's continuation fund for its stake in the National Stock Exchange of India, closing at approximately $700 million in April 2024. HarbourVest Partners, LGT Capital Partners, and Pantheon Ventures led the transaction.

Foundation PE itself has been actively involved in the Indian secondary market. Four of the eight investments from Foundation PE's debut Asia secondaries fund, which is nearing full deployment, are in India. A recent transaction involved a Foundation-backed continuation vehicle acquiring a stake in HCAH (Health Care At Home), an out-of-hospital care provider, from Quadria Capital's 2013-vintage Fund I. Quadria will reinvest in the continuation vehicle alongside Foundation.

Alok Gupta, a partner and head of India at Foundation, noted the demand for near end-of-fund-life solutions due to regulatory and commercial pressures. He highlighted numerous discussions around funds from the mid-2010s vintages, particularly VC funds facing challenges in scaling portfolio companies and valuations.

Jeremy Foo, a partner and co-founder of Foundation, mentioned that Asia-based GPs are becoming more proactive in seeking liquidity, with calls coming in about funds in years five through seven. Managers often aim to sell partial stakes in certain companies to rebalance funds heavily concentrated in one sector.

Foundation PE is also working on an India-focused fund raised under the AIF (Alternative Investment Fund) regime to target onshore opportunities more effectively. Foo observed that despite the hype around India's public markets, many portfolio companies are unsuitable for IPOs and potentially available at attractive valuations. The structural nuances of AIFs further incentivize trading. Once an onshore fund reaches its end-of-life, it enters a one-year liquidation period, requiring assets to be sold or distributed. Extensions require approval from three-quarters of the LP base and a cash bid of at least 25% of the remaining net asset value (NAV).

Founded in 2017 by Jason Sambanju and Jeremy Foo, Foundation PE focuses on delivering innovative secondary solutions to GPs and LPs across Asia. The firm targets private equity secondaries in Asia, with a focus on China, India, and Southeast Asia. It specializes in GP-led fund restructurings, purchasing limited partner (LP) interests in existing funds, and other bespoke liquidity solutions for LPs. Tikehau Capital has a majority equity stake in Foundation PE, expanding its private equity offering in Asia.