Archive · 30 Jun 2025
New Rules Boost Co-investment in India
Imagine a way for big investors to pool money into companies.
This is called co-investment.
Before, it wasn't very popular, but now new rules are making it easier.
The rules let funds create special vehicles to invest together, which is easier than the old way.
This is good news for large investors like pension funds, and experts think it'll lead to even more co-investing in the future.
Co-investment via PMS saw assets rise to Rs 3,812 crore by April 2025.
Sebi formalized co-investment via the PMS route in December 2021.
A new framework allows AIFs to create a Co-investment Vehicle (CIV) to ease compliance.
Sovereign wealth and pension funds are expected to benefit from the new regime.
The new regime is expected to drive a sharp increase in co-investment.
- Who
- Alternative Investment Funds (AIFs), investors, sovereign wealth, and pension funds.
- What
- New regulations regarding co-investment for Alternative Investment Funds (AIFs).
- When
- The new framework was announced on June 18, and the PMS route was formalized in December 2021.
- Where
- India, specifically with the IFSCA in GIFT IFSC.
- Why
- To ease compliance requirements and support capital formation in unlisted companies.
- Assets under Management (April 2025)
- Rs 3,812 crore
- Number of Clients (April 2025)
- 535
- Co-investment Vehicle (CIV)
- New investment structure
- Regulator
- SEBI
