PE landscape getting better in India as investments fetch higher returns

Average returns on exited investments have risen from 8 per cent (2006-2008 vintage) to 22 percent (2012-2014 vintage)

The private equity (PE) landscape is getting better in India, with investments in the past five years fetching higher return than earlier vintages.

Average returns on exited investments have risen from an annual eight per cent (2006–2008 vintage) to 22 per cent (2012–2014 vintage), reveals a recent report by McKinsey & Company. The biggest challenge has usually been fewer exits and poor returns.

This is a huge positive for the sector, says Haigreve Khaitan, partner at Khaitan & Co. It will encourage Limited Partners (LPs, who invest in PE firms), to deploy more money in India. 

This also explains why