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January 21, 2025

Private-equity AIFs consistently outperform Sensex over the past five fiscals

by Team Oister

There’s a quiet reassurance in knowing. In a world that constantly shifts and surprises, the human instinct to seek clarity and control is as ancient as it is universal. This drive to understand, to see the full picture, and to anticipate outcomes offers not just security but a semblance of mastery over life’s complexities. Knowledge, after all, is power; clarity, a rare and divine comfort. When obscurity clouds our ability to comprehend, doubt and anxiety inevitably creep in. For most, the absence of clarity isn’t just disorienting — it’s unsettling.

Think of the everyday ways this intrinsic need manifests. To conquer time’s elusive nature, we created the clock. For direction, we engineered the GPS to guide us through uncharted terrains. Many gamers refuse to embark on a quest without first consulting a detailed walkthrough, while diners often deliberate over menus long before stepping into a restaurant. Travellers pore over itineraries, reviews, and guides — or simply opt to drive themselves to maintain control over their journey. These behaviours underscore a simple truth: clarity offers a sense of structure and predictability that empowers decision-making.

At its essence, clarity stems from transparency — the kind that transforms vague, ambiguous landscapes into navigable territories. Yet, in certain realms, opacity is not only tolerated but celebrated. Private markets, unlike their public counterparts, flourish in a shroud of secrecy. Stealth, in this context, serves a purpose: it provides the cocoon necessary to nurture innovation, test ideas without scrutiny, and lay the groundwork for revolutionary leaps. However, this same opacity can alienate those outside the inner circle, creating barriers to identifying and seizing opportunities.

The journey to transparency, whether in the mundane choices of daily life or the intricate corridors of investments, has been a slow but deliberate march. What was once hidden — knowledge, insights, patterns — has increasingly been brought to light, dismantling the walls of exclusivity and replacing them with windows of accessibility. Today, the Indian private market stands at a pivotal juncture in this evolution. With its blend of promise and potential, the market is poised for greater openness — a shift that has the power to redefine its trajectory.

At Oister Global, we understand the value of transparency as our north star. It is the bedrock of informed decision-making, the linchpin that enables clarity and control. With this ethos in mind, we are thrilled to unveil the second edition of our report, No ifs about AIFs 2.0, developed in collaboration with CRISIL. This comprehensive report offers an illuminating glimpse into the Indian private market, unravelling its intricacies and shedding light on its vast potential.

The insights we’ve shared here are but the tip of the iceberg. For those who yearn to delve deeper, to gain not just clarity but actionable knowledge, the full report awaits. It is a treasure trove of perspectives, data, and analysis — crafted to empower and inform. So why stop here?

Download OisterxCRISIL No ifs about AIFs 2.0

Frequently Asked Questions

Q. What are Private Equity AIFs and their significance?
A. Private Equity AIFs are investment funds that focus on private markets, offering consistent outperformance over benchmarks like Sensex and providing long-term growth opportunities.
Q. How have AIFs outperformed the Sensex over the past five fiscals?
A. AIFs delivered a pooled IRR of 21.54%, significantly outperforming Sensex with an alpha of 5.39%.
Q. What insights does the CRISIL x Oister report provide on Indian private markets?
A. The report highlights consistent AIF growth, increased investor diversity, transparency improvements, and India’s global leadership in fundraising.
Q. Why is transparency important in private markets?
A. Transparency enhances investor trust, enabling better decision-making and unlocking the full potential of private equity markets.
Q. What role do younger and diverse investors play in the AIF ecosystem?
A. The report notes a rise in contributions from younger investors and women, signaling a broader and more inclusive investor base.

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