Indian venture capital and private equity managers are significantly increasing their own financial stakes in new funds to attract limited partners amid intensifying competition for investor capital. According to reports from Mint, Motilal Oswal Private Equity and its leadership team have consistently committed 10-12% of each fund raised over the past two decades, with fund sizes growing from ₹550 crore in 2007 to ₹8,500 crore this year. Carnelian Asset Management & Advisors is committing more than ₹100 crore of its own capital to a ₹2,000 crore private equity fund, while Mettle Capital is planning a sponsor commitment well above the minimum for its approximately ₹3,000 crore maiden fund.
The push for larger manager commitments comes as fundraising becomes increasingly concentrated in fewer, larger vehicles. As reported by Mint, in the first half of 2026, 48 funds raised $21.17 billion, more than double the $10.14 billion raised by 55 funds in the year-ago period, according to an EY report in September. In July, eight funds raised $2.5 billion, compared with 14 funds that raised $1.5 billion in July 2025. Many Indian incumbent and new VC/PE funds are entering the market to raise new funds, including ValueQuest Tristar, Waterbridge Ventures, Lightspeed India, and Multiples, which is in talks to launch its next fundraise next year, targeting $1 billion-1.2 billion.
The Securities and Exchange Board of India mandates sponsor or manager commitment at a minimum of ₹5 crore, or 2.5% of the total fund corpus, whichever is lower, for all fund sizes. According to Mint, for established firms, capital generated from earlier funds can help finance commitments to subsequent vehicles, with the team's capacity increasing over time as the number of vintages grows. For newer managers without an established track record, a sizable commitment can help demonstrate conviction in a strategy, as GP contributions usually stop at ₹15 crore-20 crore for newer funds.
A larger commitment can reassure investors that fund managers have their own capital at risk alongside LPs, according to Rohit Bhayana, co-CEO and co-founder of a fund of funds that invests in venture capital and private equity funds. As reported by Mint, putting in a large amount is a huge sign of confidence and skin in the game, with investors feeling much more comfortable once fund managers put their own money at risk. In a recent instance, Bhayana noted that a fund manager put in as much as ₹200 crore in a ₹1,700 crore-2,000 crore fund.
Despite the benefits, large commitments can raise questions about how much of a fund manager's personal wealth is tied up in the fund and whether the manager's own financial interests could begin to outweigh the needs of external investors. According to Mint, a fund manager who puts in too much of their own capital risks turning the business into a family office, with employees effectively managing the founder's wealth rather than focusing on external investors. A large personal stake can also create a sense of entitlement, with some founders expecting greater control over decisions because of the money they have invested.
