Financial institutions to expand Indian private equity

Financial institutions, including insurers and pension funds, are poised to take a more prominent role in the private equity market of India as the government ramps up policy support for long-term domestic capital. According to industry estimates, domestic investors represented 52.7% of the capital in the country's Category I and II alternative investment funds (AIFs) as of March 2025. While high net worth individuals and family offices have historically led these inflows, contributions from larger institutional players like pension funds and insurers have remained relatively small.