KKR and Blackstone are spearheading a shift that has turned India into Asia’s new buyout hub, as global firms redirect capital and leadership away from China, according to a report by Bloomberg.

Seven international private equity managers, including Blackstone’s Amit Dixit and KKR’s Gaurav Trehan, now lead Asia operations from Mumbai, overseeing more than $100bn in assets. Just five years ago, no Asia-head roles were based in India.

Blackstone has built around $50bn of private equity and real estate investments in India and recently called it the firm’s best investment market globally. KKR has invested about $11bn in the country since entering nearly two decades ago, with co-founder Henry Kravis announcing plans to deploy the next $10bn at a faster pace.

The pivot underscores India’s rise as China’s appeal dims amid slowing growth and regulatory headwinds. According to the Global Private Capital Association, India has attracted 41% of private equity inflows into emerging and growth markets this year, surpassing China’s 34% share, down from 66% in 2018.

“The Indian private equity market has matured. Deal sizes have increased, the buyout market has deepened and multiple avenues of exits have emerged,” said Dhiraj Poddar, co-head of Asia at TA Associates.

Despite risks including high valuations, the tech sector downturn, and escalating US tariffs, private equity leaders argue India’s fundamentals are compelling. “Geopolitics can change tomorrow, but the fact is that India has delivered consistent returns over the last several years,” Poddar added.

Advent International, Brookfield, PAG, and TA Associates are among the firms elevating India-based executives to regional or even global leadership positions, signalling the country’s growing centrality to Asia strategies.

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