India's AIF Market Soars, Needs Domestic Institutional Capital: IVCA President Rajat Tandon

• India's AIF market has scaled to Rs 13.5 lakh crore, a 16x increase in eight years, driven by foreign capital, family offices, and HNWIs.
• Despite rapid growth, the market remains under-institutionalised, with negligible participation from large domestic institutions and balance-sheet allocators.
• Domestic institutions utilize less than 0.1% of their 5% permitted allocation to AIFs, hindering stable, long-duration capital inflow.
• Private credit is a fast-growing segment, filling capital gaps, while Category III AIFs show significant growth potential with better clarity.
• The next phase of India's alternatives market focuses on institutionalisation, improved governance, and visible outcomes (DPI) for sustainable growth.

Why It Matters: India's booming AIF market needs greater domestic institutional participation for stable, sustainable growth.