Sunday, September 24, 2023
Sunday, September 24, 2023
HomeINB EnglishPreqin's enhanced benchmarks to support India-focused investors with portfolio analysis and due...

Preqin’s enhanced benchmarks to support India-focused investors with portfolio analysis and due diligence

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Preqin, the global leader in alternative assets data, tools, and insights, produced the latest Performance Benchmark for India Alternative Funds (AIF), in partnership with the Indian Venture and Alternate Capital Association (IVCA) and under eligibility from Securities and Exchange Board of India (SEBI). The performance benchmark will help investors conduct improved portfolio analysis and due diligence, while domestic managers can utilise it for their reporting purposes.

Geetanjali Bhalotia, SVP, Head of Investor Data at Preqin saysNot only will this benchmark help domestic managers gain enhanced insights into their fund performance, it will also allow global investors to better understand, compare and measure fund performance of AIFs in India, attracting more foreign capital. With the increasing interest in the Indian private capital market, we anticipate more participation from practitioners with subsequent launches.”

India’s AIF industry is experiencing rapid growth and attracting investor interest. With more than 1,000 AIFs, the industry has grown quickly from INR 702bn ($10.3bn) in total commitment raised at the end of 2016 to INR 8,337bn ($100.2bn) by the end of Q1 2023 – increasing by almost 10 times.

The benchmark utilizes data reported directly by GPs to Preqin. In this latest report, data was drawn from 351 schemes across AIF category I, II and III for performance data as of 30 September 2022. This benchmark provides a top-level overview on a range of indicators such as internal rate of return (IRR), called capital, distributed to paid-in capital (DPI), and residual value to paid-in capital (RVPI) for AIF category I and II funds. Pooled IRR is now provided where applicable. For AIF category III funds, the benchmark provides insights on return profiles across different time horizons on predominant strategies employed by domestic managers.

Category I AIF, which are predominantly venture capital funds, continues to outperform the public market index since March 2019, with an index value of 252.9 in September 2022, compared to 169.4 for the MSCI India TR.

Launch of sub-category benchmarks

In this latest report, nine sub-category benchmarks have been added for various strategies across all AIF categories, giving further insights into the performance of the India market.

The sub-categories included are:

Categories I & IICategory III
–          Venture capital–          Hedge funds
–          Private equity–          Traditional long-only
–          Early stage–          Emerging & small cat III AIFs
–          Private debt–          Large Cat III AIFs
–          Real estate

Preqin publishes its Benchmark report for India AIFs on a half-yearly basis, for periods ending March and September. To find out how you can submit your performance data for benchmarking, please contact [email protected].

To register your interest in a custom performance benchmark for your scheme, or speak to our team, fill in the form here.

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