Global private equity (PE) giants Blackstone Inc. and KKR & Co. Inc. are reportedly exploring secondary portfolio deals in India, signaling a maturing Indian market and newer avenues for capital deployment. These firms, known for buying stakes from existing investors in other countries, are now eyeing similar transactions in the Indian market. This move could mark the first instance of these two investment powerhouses participating in India's secondary portfolio transactions market.
Blackstone, with over $1.17 trillion in assets under management as of March 2025, has initiated evaluations of multi-asset secondary deals in India, even without a dedicated team for this specific purpose in the country. KKR, managing $664 billion in assets, is also devising strategies to execute such deals in India. Both firms are particularly interested in companies with clear timelines for public listing. Neither Blackstone nor KKR has officially commented on these explorations.
This interest from Blackstone and KKR arrives at a time when India's secondary market is witnessing increased activity, with investors trading shares among themselves. Early investors often seek exits during late-stage funding rounds or before initial public offerings (IPOs), when PE firms are more inclined to invest. These funding rounds typically involve a combination of new stock and the sale of existing shares. However, disagreements on valuations in the private market and uncertainties surrounding IPO exits due to global volatility have created bottlenecks.
The PE sector in India has evolved significantly. Investor confidence has grown, leading to record-breaking PE deals. In 2024, private equity and venture capital investments in India exceeded $60 billion, demonstrating a strong upward trend. As competition intensifies, firms are diversifying their portfolios to capitalize on emerging opportunities across various industries. Sectors like technology startups, fintech, e-commerce, SaaS, healthcare, infrastructure, real estate, and renewable energy are attracting significant PE investments.
Several top PE firms are actively investing in India, including global leaders like Blackstone, KKR, and Carlyle, as well as Indian firms like ChrysCapital and Everstone. These firms provide capital, guidance, and industry expertise to help companies scale efficiently and achieve higher valuations.
India's strong GDP growth has made it a favored investment destination. Geopolitical and macroeconomic factors are also expected to benefit Indian private equity funds, despite an overall fundraising drop in the Asia-Pacific region. Blackstone's president and chief operating officer, Jonathan Gray, noted that India has been the firm's third-largest country for deploying equity capital, highlighting the phenomenal revenue growth in the country.
One landmark continuation fund deal in India involved ChrysCapital, one of India's largest private equity firms, closing a roughly $700 million continuation fund led by HarbourVest Partners and LGT Capital Partners. This deal, which was oversubscribed, housed ChrysCapital's stake in the National Stock Exchange of India.
The increasing interest in India's secondary market is also evident in the expansion of dedicated secondaries firms in the country. TPG NewQuest opened an office in Mumbai in 2017, and TR Capital opened offices in Mumbai and New Delhi in 2018 and the following year, respectively.
