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In an exclusive interaction with ET Now, Rishi Kapoor, Co-CEO of Investcorp, said India remains one of the fund’s top three high-conviction markets, driven by robust domestic consumption, resilient GDP growth, and a maturing capital market that offers both entry and exit opportunities for global private investors. “We actually see India as one of our top three high-conviction markets,” Kapoor told ET Now. “To date, we’ve had very strong returns here for our investors , and what excites us now are the themes around domestic consumption, healthcare, IT services, and financial inclusion.” Backing India’s Consumption Story Kapoor said Investcorp’s India playbook is centered on domestic demand, not exports , a strategy that reflects the rise of a young, aspirational middle class. “The themes and sectors we’re investing behind in India are largely focused on domestic consumption,” he said. “We’re backing the emergence of a growing middle class that wants to consume goods and services at a reasonable price point.” Among its key investments, Investcorp has backed Global Dental, a leading dental care chain, and NSE IT, a technology spin-out from the National Stock Exchange , both representing sectors with secular growth prospects. “These are all areas where we see long-term domestic growth that will persist well into the next decade,” Kapoor noted. Capital Markets: Healthy, Not Exuberant Discussing India’s buoyant equity markets, Kapoor stressed the importance of “healthy optimism” rather than irrational exuberance. “A balanced, healthy market is good for investors like us,” he said. “Exuberant markets distort valuations and make it difficult to acquire assets at attractive prices. What we have now is buoyancy , and that’s the right environment for disciplined capital deployment and exits.” He added that buoyant public markets also enable IPOs and strategic exits, allowing Investcorp to return profits to investors and recycle capital efficiently. Navigating Trade Tensions and Global Shifts Asked whether the ongoing US-India trade tensions have affected their outlook, Kapoor said Investcorp’s India portfolio remains largely insulated. “Of our nearly 15 India portfolio companies, not one is in the business of exporting goods to the US,” he explained. “So, at the first order, we’re unaffected. At a second order, if tensions persist and impact overall economic growth, we’ll naturally factor that into our calculus.” He added that uncertainty “beyond reasonable levels” makes it harder for investors to underwrite new deals, but Investcorp’s India thesis remains long-term and resilient. Exits, Returns, and New Bets Investcorp’s India portfolio now stands at around $1 billion, with strong exit momentum through IPOs and secondary sales to strategic buyers. “If anything, our exit activity in India probably puts us right at the upper tier of peers globally,” Kapoor said. “Our DPI is already north of 50% on our most recent fund. Our returns stack up very well.” While consumer and healthcare remain core to Investcorp’s India portfolio, Kapoor said the firm has recently added cybersecurity and IT services as new focus areas , particularly following the NSE IT spin-off. “We invested in IT services really behind a megatrend , cybersecurity,” Kapoor said. “That’s one new sector we’ve added, while our focus on consumer, healthcare, and financial services continues.” With a disciplined eye on fundamentals, Investcorp’s India strategy is leaning into domestic growth themes and technology-driven services , signaling confidence in India’s economic trajectory amid global uncertainty. “Much more about India, much more about services, much more about healthcare in particular , that’s where our conviction lies,” Kapoor concluded. About FII Institute The FII Institute is a global nonprofit foundation with an investment arm and one agenda: Impact on Humanity. Through its THINK, XCHANGE, and ACT pillars, the Institute fosters great ideas, empowers innovators, and invests in scalable solutions across critical sectors including AI and robotics, sustainability, healthcare, and education. For more information, please visit: https://fii-institute.org
