India’s economic ascent over the last decade has been tremendous, with projections indicating continued growth. In the pursuit of scale, operating companies across the growth cycle in India are tapping into alternative fundraising sources, including private equity and venture capital (PE & VC). This has led to a rapid growth and maturation in India’s regulatory landscape around private capital and alternative investment funds (AIF).
In this publication, we provide an overview of the considerations that are relevant to India-focused AIFs, considering current trends and regulatory shifts. We delve into the intricacies of the different structural options for PE & VC funds that cover India, namely:
(i) onshore funds that pool domestic and foreign capital;
(ii) offshore funds that pool foreign capital; and
(iii) funds in the Gujarat International Finance Tec-City (the GIFT City) that pool capital from both within and outside India.
