Strategic Focus on Artificial Intelligence and Operational Efficiency
Mitch Truwit, co-chief executive of global private equity firm Apax Partners, stated that India’s technological capabilities, education levels, and intellectual capital will ensure the country does not fall behind in the artificial intelligence race. Speaking regarding the firm's long-term outlook, Truwit emphasized that while India may not be a pioneer in developing large language models, it possesses significant strength in change management and operationalizing AI to create efficiency.
Truwit indicated that Apax expects to step up its investment pace in the Indian market as the firm marks two decades of investing there. The private equity firm has invested approximately $4 billion in the Indian market over this period and has returned more than $10 billion to investors, delivering an internal rate of return north of 25%.
Despite short-term headwinds such as currency depreciation, inflation, and geopolitical factors, Truwit described India as one of Apax’s best-performing markets. The firm is currently targeting a first close by March for its new twelfth fund, which totals $12 billion. Apax may direct around 10% of this new capital into Indian businesses, with a specific focus on technology, consumer, and healthcare sectors.
Investment Horizon and Sector Selection
Harjot Dhaliwal, partner and India head for Apax, stated that the firm views a five-to-seven-year investment horizon to mitigate risks associated with geopolitics and oil prices. This extended timeline allows the firm to navigate short-term volatility while capitalizing on long-term structural growth in the region.
Dhaliwal identified supply chain management, cybersecurity, and new age digital businesses as attractive sectors for growth within the Indian market. The firm’s current portfolio in India includes companies such as iD Fresh, greytHR, Azentio Software, IBS Software, Fractal Analytics, Globalogic, and Healthium.
Truwit explained that Apax invests out of a single global pool of capital rather than allocating separate pools for Asia and the United States. This structure allows the firm to deploy resources flexibly across its global operations, including its targeted expansion in India's technology and operational sectors.