Performance Benchmark for India Alternative Investment Funds 2022

Benchmark Report
for India Alternative
Investment Funds 2022

In partnership with the Indian Venture and Alternate Capital Association (IVCA) and under eligibility from the
Securities and Exchange Board of India (SEBI), Preqin is proud to launch our first dedicated performance
benchmark for India’s Alternative Investment Funds (AIFs). The benchmark comprises 296 schemes across
Category I, II, and III AIFs for performance data as of 31 March 2021.

Fig. 1: Benchmark Coverage: AIF Category I & II

Benchmark Estimated industry size ($bn)* Coverage

No. of schemes 192 388 49%

Total commitment ($bn) 32.6 50.1 65%
Source: Preqin Pro and Preqin Performance Benchmark for India AIF. Data as of March 2021

Fig. 2: AIF category III breakdown

Hedge funds
Traditional All AIF
long-only CTAs category III
Equity strategies Credit strategies
No. of schemes 70 1 32 1 104
Source: Preqin Performance Benchmark for India AIF

*Industry size is estimated based on data from Preqin Pro as of March 15 2022 and includes India-based private capital funds (commingled) of vintages
2013-2020. Total fund commitments for funds in market are based on target fund size.

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Performance Benchmark for India Alternative Investment Funds 2022

Fig. 3: Median benchmark: AIF category I (INR)

Median Net Multiple Quartiles (X) Net IRR Quartiles (%)

No. of Called
Vintage schemes (%) DPI (%) RVPI (%) Q1 Median Q3 Q1 Median Q3

2013 3 91.1 20.1 110.9 n/a n/a n/a n/a n/a n/a

2014 5 99.5 16.2 139.4 n/a n/a n/a n/a n/a n/a

2015 9 96.2 6.5 146.2 2.41 1.84 0.99 30.3 24.5 -0.2

2016 13 71.6 6.8 160.2 2.02 1.64 1.10 34.3 24.6 2.3

2017 7 64.3 1.5 123.1 n/a n/a n/a n/a n/a n/a

2018 9 38.1 0.1 110.8 1.35 1.11 0.41 21.7 8.6 -17.8

2019 6 45.0 0.1 129.2 n/a n/a n/a n/m n/m n/m

2020 7 3.3 0.0 87.1 n/a n/a n/a n/m n/m n/m

Source: Preqin Pro and Preqin Performance Benchmark for India AIF. Data as of March 2021

Fig. 4: Median benchmark: AIF category I (USD)

Median Net Multiple Quartiles (X) Net IRR Quartiles (%)

No. of Called
Vintage schemes (%) DPI (%) RVPI (%) Q1 Median Q3 Q1 Median Q3

2013 3 85.5 18.3 98.5 n/a n/a n/a n/a n/a n/a

2014 5 94.7 14.8 124.9 n/a n/a n/a n/a n/a n/a

2015 9 97.1 6.4 137.3 2.29 1.75 0.93 27.3 21.8 -2.5

2016 13 75.3 6.5 151.6 1.86 1.55 1.01 30.7 21.4 -0.3

2017 7 64.0 1.6 118.5 n/a n/a n/a n/a n/a n/a

2018 9 38.2 0.1 108.8 1.31 1.09 0.41 19.4 6.7 -17.9

2019 6 46.5 0.1 125.8 n/a n/a n/a n/m n/m n/m

2020 7 3.3 0.0 86.7 n/a n/a n/a n/m n/m n/m

Source: Preqin Pro and Preqin Performance Benchmark for India AIF. Data as of March 2021

© Preqin Ltd. www.preqin.com

Performance Benchmark for India Alternative Investment Funds 2022

Fig. 5: Median benchmark: AIF category II (INR)

Median Net Multiple Quartiles (X) Net IRR Quartiles (%)

No. of Called
Vintage schemes (%) DPI (%) RVPI (%) Q1 Median Q3 Q1 Median Q3

2013 4 80.6 50.4 22.8 n/a n/a n/a n/a n/a n/a

2014 5 100.0 118.9 0.6 n/a n/a n/a n/a n/a n/a

2015 12 97.8 28.0 106.8 1.79 1.43 1.26 15.5 11.2 7.0

2016 15 80.5 27.7 77.8 1.56 1.30 1.09 17.9 11.6 2.1

2017 23 76.8 17.4 119.1 1.53 1.32 1.18 16.0 12.6 8.9

2018 23 57.0 0.8 103.5 1.40 1.13 0.94 15.5 8.0 -5.6

2019 31 38.9 2.2 100.2 1.15 1.08 1.01 n/m n/m n/m

2020 18 12.5 0.0 89.5 1.06 0.96 0.77 n/m n/m n/m

Source: Preqin Pro and Preqin Performance Benchmark for India AIF. Data as of March 2021

Fig. 6: Median benchmark: AIF category II (USD)

Median Net Multiple Quartiles (X) Net IRR Quartiles (%)

No. of Called
Vintage schemes (%) DPI (%) RVPI (%) Q1 Median Q3 Q1 Median Q3

2013 4 84.5 45.7 18.8 n/a n/a n/a n/a n/a n/a

2014 5 101.2 111.6 0.5 n/a n/a n/a n/a n/a n/a

2015 12 97.4 26.8 97.6 1.60 1.33 1.16 12.5 8.8 4.2

2016 15 79.8 26.5 70.4 1.40 1.22 1.01 15.4 9.0 0.3

2017 23 79.6 14.9 106.7 1.34 1.24 1.12 12.9 9.6 5.2

2018 23 58.6 0.8 99.7 1.34 1.08 0.92 13.4 5.2 -7.6

2019 31 38.3 2.2 99.5 1.14 1.06 1.02 n/m n/m n/m

2020 18 12.4 0.0 89.4 1.07 0.96 0.77 n/m n/m n/m

Source: Preqin Pro and Preqin Performance Benchmark for India AIF. Data as of March 2021

© Preqin Ltd. www.preqin.com

Performance Benchmark for India Alternative Investment Funds 2022

Fig. 7: Benchmark: AIF category III (INR)

AIF Category III AIF Category III -
Benchmark name AIF Category III - Hedge Funds Traditional Long-Only MSCI India TR

No. of constituent schemes 79 52 26 n/a

1-month return (%) 0.13% -0.26% 0.90% 2.29%
YTD return (%) 4.78% 3.44% 7.71% 5.18%
6-month return (%) 19.41% 16.66% 26.02% 27.44%
12-month return (%) 56.08% 49.41% 72.64% 76.99%
2-year return (%) 22.53% 19.47% 28.94% 22.37%
3-year return (%) 20.98% 18.30% 26.07% 30.63%
5-year return (%) 64.66% 58.85% 80.04% 70.50%
2-year annualized return (%) 10.69% 9.30% 13.55% 10.62%
3-year annualized return (%) 6.47% 5.76% 8.03% 9.32%
5-year annualized return (%) 10.49% 9.70% 12.48% 11.62%
3-year volatility (%) 19.31% 18.59% 21.69% 24.66%
5-year volatility (%) 15.77% 15.20% 17.96% 20.94%
Source: Preqin Performance Benchmark for India AIF, Factset. Data as of March 2021

Fig. 8: Benchmark: AIF category III (USD)

AIF Category III AIF Category III -
Benchmark name AIF Category III - Hedge Funds Traditional Long-Only MSCI India TR

No. of constituent schemes 79 52 26 n/a

1-month return (%) -0.18% -0.54% 0.53% 2.29%
YTD return (%) 4.15% 2.82% 7.05% 5.81%
6-month return (%) 19.91% 17.15% 26.53% 27.44%
12-month return (%) 60.19% 53.41% 77.06% 76.99%
2-year return (%) 15.31% 12.47% 21.26% 22.37%
3-year return (%) 6.82% 5.01% 10.63% 30.63%
5-year return (%) 48.40% 43.45% 61.20% 70.50%
2-year annualized return (%) 7.38% 6.05% 10.12% 10.62%
3-year annualized return (%) 2.22% 1.64% 3.43% 9.32%
5-year annualized return (%) 8.21% 7.84% 10.02% 11.26%
3-year volatility (%) 23.30% 22.68% 25.37% 24.66%
5-year volatility (%) 19.41% 18.95% 21.22% 20.94%
Source: Preqin Performance Benchmark for India AIF, Factset. Data as of March 2021

© Preqin Ltd. www.preqin.com

 Performance Benchmark for India Alternative Investment Funds 2022

Fig. 9: Index returns (USD): AIF fund categories vs. global private capital and MSCI India TR Index
(rebased as of Sep-30-2016)
Index returns (rebased to

250
100 as of Sep-30-2016)

225
200
175
150
125
100
75
Sep-16 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21

Date
Category I Category II PrEQIn Private equity
PrEQIn Venture capital PrEQIn Private debt PrEQIn Real estate
PrEQIn Infrastructure PrEQIn Natural resources MSCI India TR

Source: Preqin Pro, Factset, and Preqin Performance Benchmark for India AIF. Data as of March 2021

Fig. 10: Performance of AIF category III (USD) vs. MSCI India TR

90%
80%
Net return/volatility

70%
60%
50%
40%
30%
20%
10%
0%
1-year return 3-Year Annualized 5-Year Annualized 3-year volatility 5-year volatility
Return Return
AIF Category III AIF Category III - Hedge Funds
AIF Category III - Traditional Long-Only MSCI India TR

Source: Preqin Performance Benchmark for India AIF, Factset. Data as of March 2021

Fig. 11: India-focused private capital: annual capital called up, distributed, and net cash flow, 2013 - 2021

4,000

3,000

2,000

1,000

-1,000

-2,000

-3,000
2013 2014 2015 2016 2017 2018 2019 2020 2021

Capital called up (USD mn) Capital distributed (USD mn) Net cash flow (USD mn)

Source: Preqin Performance Benchmark for India AIF. Data as of March 2021

© Preqin Ltd. www.preqin.com

 Performance Benchmark for India Alternative Investment Funds 2022

Fig. 12: India-focused category I & II: risk/return by asset class (vintages 2013-2018)

24%

20%
Return - median net IRR

16%

12%

8%

4%

0%
15% 20% 25% 30% 35%
Risk - standard deviation net IRR
Private debt Private equity Real estate Venture capital
Source: Preqin Performance Benchmark for India AIF. Data as of March 2021

*The size of each bubble represents the fund size used in this analysis.
Note: Infrastructure, SME, and social venture funds are not included in the analysis as there are insufficient funds.

Methodology
Scope of benchmark Source of data

• The benchmark includes AIFs registered with • The benchmark utilizes data reported directly by
SEBI. Category I, II, and closed-end PIPE funds GPs to Preqin. For category I, II, and closed-end
are eligible for benchmarking if the scheme PIPE schemes, Preqin collected since-inception
has completed one year from its first close, up net cash flows and pre-tax NAV figures. For
until March 2021. Angel funds and schemes category III and open-ended PIPE funds, net
without transactions are excluded. Category (i.e. after tax and fees) performance figures
III and open-ended PIPE funds are eligible for (including monthly returns) NAV per share,
benchmarking if they were incepted prior to and assets under management (AUM) were
March 2021. collected.

• Category I AIFs: AIFs that invest in start-ups • Preqin scrutinizes data contributions for
or early-stage ventures. consistency and compatibility with our
requirements, and any fund that does not meet
• Category II AIFs: AIFs that do not fall in the requirements may be excluded from this
to Category I and III, and which do not benchmark. Data validation by Preqin, however,
undertake leverage or borrowing other does not guarantee the reliability of portfolio
than to meet day-to-day operational valuations or the accuracy of data provided by
requirements, such as real estate funds, the participants.
private equity funds, and funds for
distressed assets. • Preqin does not disclose fund-level data on the
constituent funds, as agreed with IVCA, SEBI,
• Category III AIFs: AIFs that employ diverse or and the project participants. Data collected for
complex trading strategies and may employ this project is limited to use on an anonymous
leverage including through investment in basis to protect the confidentiality of individual
listed or unlisted derivatives, such as hedge funds.
funds and PIPE funds.

© Preqin Ltd. www.preqin.com

Performance Benchmark for India Alternative Investment Funds 2022

About Preqin

Preqin is the Home of AlternativesTM, the foremost provider of data, analysis, and insights to the
alternatives industry. The company has pioneered rigorous methods of collecting private data for almost 20
years, enabling more than 170,000+ global professionals to streamline how they raise capital, source deals
and investments, understand performance, and stay informed. Through close partnerships with its clients,
Preqin continuously builds innovative tools and mines new intelligence, helping them to make better
decisions every day.

For more information visit www.preqin.com.

About the Indian Venture and Alternate Capital Association (IVCA)

Indian Venture and Alternate Capital Association (IVCA) is a member-based national organization that
represents venture capital and private equity firms. It promotes the industry within India and encourages
investment in high growth companies. IVCA’s members comprise venture capital firms, institutional
investors, banks, incubators, angel groups, corporate advisors, accountants, lawyers, government bodies,
academic institutions, and other service providers to the venture capital and private equity industry.

For further information, please visit www.ivca.in

© Preqin Ltd. www.preqin.com