Tag: nps fund of funds aif selection process india

In a strategic dialogue with TVS Capital’s Gopal Srinivasan, Shri Ramann outlined how India’s long-term growth depends on well-governed AIFs, credible selection frameworks, and broader participation of retirement funds in private markets

The Indian Venture and Alternate Capital Association (IVCA) hosted its Domestic Institutional Investors (DII) and Exits Forum 2025 in New Delhi, bringing together leading voices from policy, investment, and regulatory sectors. The forum focused on mobilising Indian institutional capital and strengthening long-term domestic investment strategies.
A central voice at the event was Shri Sivasubramanian Ramann, Chairperson of the Pension Fund Regulatory and Development Authority (PFRDA), who addressed the role of pension capital in shaping India’s financial future. His participation included the formal report launch and a fireside chat with Gopal Srinivasan, Chairman and Managing Director of TVS Capital Funds, on the theme “Enabling Patient Capital: The Pension Fund Perspective on India’s Growth Story.”

Speaking to a hall of policymakers and asset managers, Shri Ramann outlined the critical need for structured pension participation in private markets. “India’s next phase of capital formation must be built on strong domestic pools of patient capital,” he said. “Pension assets, by design, are long term and stable. Our effort at PFRDA is to create a framework that allows these funds to participate meaningfully in India’s private market growth.”
Shri Ramann detailed the development of a centralised and transparent fund-of-funds platform under the National Pension System (NPS) to evaluate and select AIFs with both rigour and accountability. He emphasised that trust in governance, not just returns, will determine the pace and breadth of participation by pension and retirement assets.

“We fully recognise that risk capital comes with cycles. But a well-diversified AIF portfolio, backed by robust oversight and long-term horizons, can still deliver outcomes that are beneficial for subscribers,” he said. He also highlighted the limitations of traditional seven to ten-year fund structures. India must embrace longer-tenor and perpetual vehicles that reflect the nature of retirement savings.
The forum took place against the backdrop of sharp growth in AIF participation. The joint IVCA–360 ONE CRISIL report, titled Unlocking Domestic Capital: Key to India’s AIF Growth, 2025, showed commitments to AIFs rising from ₹0.84 lakh crore in 2017 to ₹13.49 lakh crore in 2025. However, domestic institutional investor participation continues to lag global benchmarks, underscoring the need for more enabling regulation and improved exit pathways.

Shri Ramann called for a shared focus on aligning incentives, enhancing selection transparency, and establishing credible long-term frameworks that can deepen domestic capital’s footprint in India’s private market space. “If India is to unlock the full power of domestic institutional investors, we must align incentives, deepen trust through process excellence, and enable wider participation from pension, insurance, and retirement assets,” he said.
The IVCA DII & Exits Forum 2025 served as a timely reminder of the opportunity that lies ahead. As India seeks to become a global hub for innovation and capital formation, patient domestic capital, led by pensions and governed by strong frameworks, could prove to be the bedrock of its economic future.

At Prittle Prattle News, we honor your dedication and inventiveness led by showcasing you in a positive light. Under the direction of Editor-in-Chief Smruti Bhalerao, our platform is committed to disseminating powerful narratives that raise awareness and motivate change. For more important stories, follow us on LinkedIn, Instagram, and YouTub