The deal size was not disclosed but as per market sources it is expected to be around Rs 5,000 crore.
VMM has over 229 stores in 110 cities and towns across the country, according to the company's website.
The Gurgaon-based firm is the franchisor of the Vishal Mega Mart brand and wholesale supplier to over 230 hypermarket stores across India, which are operated by a network of franchisees.
Partners Group Private Equity Asia Managing Director Manas Tandon said: "We believe the company offers a unique value proposition to an underserved customer segment and will continue to have strong tailwinds for a long time."
VMM MD and CEO Gunender Kapur said: "We believe we have found the ideal partners for this ambitious next phase (of growth) in Partners Group and Kedaara Capital and expect to benefit from their combined track records of working with fast-growing consumer businesses."
Partners Group said the value creation initiatives will focus on further expanding VMM's presence, adding to its product assortment and maximizing supply chain efficiency.
The transaction is subject to regulatory approval and is expected to close later this year, Partners Group said.
Switzerland headquartered Partners Group is a global private markets investment management firm with over 62 billion euro (USD 74 billion) in investment programmes under management in private equity, private real estate, private infrastructure and private debt.
The firm manages a broad range of customized portfolios for an international clientele of institutional investors.