Archive · 9 Jun 2025
HNIs Shift to Private Equity Amid Volatile Indian Stock Markets
Rich investors in India are turning to private markets like private equity and credit because the stock market is unstable.
After a tough couple of years, these investments are growing, especially in real estate and infrastructure.
They can provide stability, but investors need to be careful.
This shift mirrors a global trend as investors look for new ways to invest their money.
Experts suggest caution, as these investments can be illiquid, and require a deep understanding of risks.
HNIs are increasingly investing in private markets due to stock market volatility.
Private equity and venture capital investments rebounded in 2024 after a contraction.
Real estate and infrastructure are major sectors for private equity investments.
Alternative Investment Funds (AIFs) are key for private credit growth.
Market observers advise caution regarding illiquidity in private markets.
- Who
- High-net-worth individuals (HNIs), family offices, and institutional investors
- What
- Shifting investments into private equity, private credit, and peer-to-peer lending
- When
- 2024, with continued growth expected
- Where
- India
- Why
- Due to increased volatility in the public equities market
- 2024 PE/VC investment
- $43 billion
- PE/VC investment in real estate and infrastructure
- 16%
- Private credit AUM in India (2022)
- $19.5 billion
- Projected private credit AUM (2025)
- $30.6 billion
- RBI's exposure cap for NBFC P2P lenders
- ₹50 lakh