AIF DEMAND SIGNALS FOCUS ON WEALTH CREATION

Rising incomes, especially due to start-up boom, take AIF industry on a high growth path.

- RAJIV RANJAN SINGH

INDIA IS AT THE CUSP of unprecedented economic growth as a host of factors converge to give wings to its ambitions. This is evidenced by growth of alternative investment funds (AIFs) in past few years. The AIF industry has witnessed a 10-fold increase in assets under management (AUM) in just a decade with total commitments touching ₹11.3 lakh crore in March 2024. The number of funds launched has risen at 13% CAGR over five years to 1,306. India commands almost 20% of Asia Pacific funds dedicated to private equity. It witnesses $50-60 billion private equity deals every year, says Vivek Singla, managing partner and CIO, Private Equity, Incred Alternative Investment. An AIF is a privately pooled investment vehicle for exposure to alternative asset classes such as private equity, venture capital, hedge funds, real estate, commodities and derivatives. Since the entry barrier is high—minimum capital is ₹1 crore—subscribers are mostly high networth individuals and institutions.