From India’s Buyout Boom to AI Unicorns: Today’s Private Markets
India Rises as Asia’s Buyout Hub; PE Consolidation Looms, Credit Mega-Deals Advance, AI Startups Defy Layoffs
Global private equity firms shift focus from China to India, while consolidation shapes PE fundraising, private credit anchors billion-dollar packages, and venture capital keeps fueling AI despite a wave of tech layoffs.
Deep Dive of the Day
Global private equity titans are recalibrating their Asian strategies. Once heavily concentrated in China, firms like Blackstone, KKR, and Carlyle are increasingly pivoting resources and capital into India. This reflects both the challenges of operating in China’s tightening regulatory environment and India’s rise as a fast-growing, open market with a deepening entrepreneurial base.
Key Details
India’s GDP growth is projected at 6–7% annually, fueling consumer and infrastructure demand.
Recent mega-deals include Blackstone’s ongoing real estate and infrastructure push, Carlyle’s bets on healthcare, and KKR’s stake in Jio Platforms.
Buyout volumes in India have climbed steadily, with 2024 seeing $65 billion in private equity and venture capital investments—up nearly 40% year-over-year.
Analysis
The pivot underscores how geopolitics and policy risk shape capital flows. China’s crackdown on tech, stricter data security rules, and increased state involvement in business have dampened investor enthusiasm. Meanwhile, India’s improving business climate, startup ecosystem, and government push for foreign capital are pulling global buyout firms eastward.
This shift also aligns with LPs’ demand for diversified Asian exposure, allocators wary of China concentration are keen to see India allocations increase. Expect infrastructure, digital platforms, healthcare, and renewables to be hot sectors.
Data Snapshot
India accounted for 45% of all private equity deals in Asia-Pacific in 2024, up from 20% just three years earlier.
China’s share fell to 25% in 2024, down from over 50% in 2020.
Quote
As one senior partner at a global PE firm told Private Equity Wire: “India is not just an alternative to China—it’s now the core of our Asia strategy.”
Quick Briefs
PE Hub – Mid-Market Expansion
ParkerGale invests in e-PlanSoft, a software provider for electronic plan reviews, underscoring tech-enabled compliance as a mid-market growth area.
Thoma Bravo-backed Anaplan acquires Syrup Tech, bolstering AI-driven supply chain optimization.
Kian-backed Spatco Energy Solutions acquires Excell Fueling Systems, consolidating fueling infrastructure services.
Private Equity Wire – Fundraising & Strategy
One Equity Partners closes Fund IX at $3.25B, signaling robust LP demand for middle-market strategies.
KKR’s CFO flags likely consolidation in PE, citing scale advantages and the need for operational heft as LPs concentrate commitments.
Private Debt Investor – Private Credit Momentum
Apollo and Ares anchor a $4B credit package for Leaf Home, showing mega-unitranche deals remain viable despite higher rates.
Park Square closes €2.4B junior capital fund, marking strong appetite for subordinated debt exposure.
TechCrunch – Startup & AI Funding
Replit reaches $3B valuation on $150M annualized revenue, cementing its role as a key AI coding platform.
An ex-Google X team raises $6M to develop a personal AI “second brain,” reflecting investor enthusiasm for productivity-focused AI.
PitchBook News – Secondary Market Trend
Capital concentration looms in secondary fundraising, with a few large managers capturing most LP allocations—echoing broader consolidation across alternatives.
Crunchbase News – Sector Spotlight
Voice AI startups attracted $3.7B globally since 2019,with healthcare, call centers, and consumer apps leading adoption.
Segment Spotlight – ESG in Europe
Europe’s private markets are undergoing a recalibration of ESG strategies, according to PitchBook. GPs are moving away from “check-the-box” policies toward integrated frameworks where ESG performance is linked to portfolio company value creation. Regulatory shifts, particularly the EU’s SFDR updates, are pushing funds to be more transparent, while LPs continue to demand measurable outcomes.
Data Point of the Day
According to Crunchbase, global tech layoffs surpassed 315,000 since the start of 2022, with 2025 seeing more than 60,000 cuts year-to-date. Despite the pullback, venture funding continues to flow into AI and deep tech, highlighting a widening gap between capital allocation and headcount discipline.
