London-based private markets firm Pantheon Ventures, which has backed Indian private equity firms including Kedaara Capital, Multiples and ChrysCapital, is actively evaluating transaction opportunities in India, even as it remains cautious amid rising macroeconomic and geopolitical uncertainties.
The renewed interest comes as improving exit activity in 2025 and stronger IPO markets boost investor confidence in India’s private equity landscape, reinforcing the country’s appeal among global limited partners (LPs).
“We have been actively evaluating opportunities for co-investments and GP-led secondaries across various sectors as improving exit activity in India in 2025 has reinforced our conviction for putting more capital in the country,” said Kunal Sood, partner at Pantheon’s Asia investment team.
“India is a core area for us within Asia-Pacific and there are many underlying tailwinds with the strong pace of GDP growth, clear government policies, political stability and demographics, among other factors,” he added, without disclosing exact figures.
India focus
Apart from private equity firms, Pantheon has also invested in a couple of Indian venture capital funds—Matrix Partners and Avataar Ventures. It also anchored ’s $700-million continuation fund alongside HarbourVest and LGT Capital Partners in 2024.
Broadly, India has emerged as an increasingly attractive destination for LPs and its regional weight has increased amid China’s slowdown, according to a report by McKinsey that was released earlier this month.
The report added that India accounts for more than a third of all Asia–Pacific investment exposure among surveyed LPs. Data notes that private equity and venture capital deals expanded 1.6-fold to $207 billion between 2016-20 and 2021-25 while exits for the same period more than doubled to around $120 billion, the consultancy firm said.
Exit momentum
Pantheon has also benefited from improving through India’s public markets.
“Over the last year, we certainly got some liquidity from the IPO markets, and this has been very encouraging for us as global investors to be able to continue deploying capital,” Sood said.
However, he struck a cautious note as geopolitical tensions and macroeconomic uncertainties continue to pose risks to deal activity across both public and private markets.
“While we have a significant presence in Asia-Pacific, the risks are elevated in the short-term due to a confluence of factors. But as every other long-term investor, we continue to navigate and find ways to make those returns,” he said.
“If you look back at some of the track records or the best deals that have happened, it was when the markets were volatile. That is where experienced general partners (GPs) or CEOs and management teams can differentiate themselves.”
AI disruption
Beyond macro risks, investors are also closely watching the impact of (AI) on traditional business models. Even across sectors, there have been AI linked disruptions that will test how managers and companies navigate the current environment.
“A lot of businesses will probably need to re-establish their moat against AI native solutions that are now coming into the market,” according to Sood.
“With the emergence of new technologies, investors are also placing more importance on the disruption risk for the business they are looking to acquire, and this has become more nuanced than ever before.”
Global footprint
Pantheon, which has invested in private markets for more than 40 years, has steadily expanded its global presence.
The firm now has offices in 12 geographies, including Berlin, Chicago, Tokyo, New York, and Hong Kong.
Sood, who operates out of Pantheon’s Singapore office, leads the sourcing, evaluation, completion and monitoring of primary, secondary and co-investment opportunities across Asia-Pacific markets.
With about $82 billion in discretionary assets under management, Pantheon invests across private equity, real assets—including infrastructure and real estate—and private credit.