Global geopolitical tensions and rapid technological disruption are forcing private equity investors to rethink traditional investment strategies.
At the IVCA Conclave 2026 in Mumbai, leading investment firms shared insights on how global conflicts, AI innovation, and market corrections are shaping future investment decisions.
Limited partners (LPs) and private equity (PE) firms, such as KKR, Pantheon, Kedaara Capital, and Blackstone, commented on the necessity of reconsidering investment strategy as geopolitical uncertainty become the new normal.
Private Equity Leaders Reassess Investment Strategies Amid Global Uncertainty
On March 10, these companies’ top executives gave speeches at the Indian Venture and Alternate Capital Association (IVCA) Conclave 2026 in Mumbai.
The ongoing conflict between the United States, Israel, and Iran is a multifaceted issue that will also affect supply chains, according to Kunal Sood, Partner, Pantheon. He continued by saying that since Pakistan and Afghanistan, India’s own neighbors, are also at war, this might have long-term repercussions.
Geopolitical Conflicts Affect Investment Decisions
Simrun Mehta, managing director of KKR, claims that PE strategies should take this into account when considering underwriting as long-term investors because the ongoing geopolitical risks have become more regular rather than irregular. Despite these difficulties, she continued, “India is still a very interesting location to invest in.”
During a panel discussion led by Ashley Menezes, COO of ChrysCapital, she stated, “We are benefiting from some of the fundamental key factors, including demographics, rising income levels, and deepening capital markets.”
📊 IVCA Conclave 2026 Key Highlights
- Event: IVCA Conclave 2026
- Location: Mumbai, India
- Participants: KKR, Pantheon, Blackstone, Kedaara Capital
- Main Focus: Impact of geopolitics and AI on investments
- Investor View: India remains a strong long-term investment destination
- Key Challenge: Supply chain disruptions and global conflicts
On March 10, private equity company leaders gave speeches at the Indian Venture and Alternate Capital Association (IVCA) Conclave 2026 in Mumbai.
Long-Term Investment Focus in India
Mehta went on to say that PEs would first need to make investments and develop companies that are essential to India’s development in sectors like financial, healthcare, and consumer services. According to her, these companies will be in operation for the next ten to twenty years rather than only five, as KKR does.
“Management teams must balance liquidity risk or refinancing risk while concentrating on the expansion and operation of the company. Consequently, having a robust and resilient capital structure is crucial. Thirdly, simply have companies ready for departure options,” she advised.
Investor Sentiment Despite Market Volatility
Strangely, as a major investor in India, I am really more enthusiastic now than I was three months ago, when things were generally better. The founder and managing partner of Kedaara Capital, Manish Kejriwal, concurred, but only in his capacity as an investor and not as a person.
In order to weather the macroeconomic storms, Kejriwal continued, Kedaara Capital decided to halt fresh deployment and expedite exits in some portfolio businesses.
💰 India Investment Outlook
- Strong Drivers: Demographics and rising income levels
- Growth Sectors: Finance, healthcare, consumer services
- Investor Strategy: Long-term investments of 10–20 years
- Market Correction: Nifty P/E dropped from 25 to about 20
- Opportunity: Investors expect strong returns despite volatility
“We were fortunate. The markets froze and the price dropped by 25% after we returned $500 million to our investors and LPs. However, as an investor today, I believe that in the next six to twelve months, I would be really opportunistic, seeing the bright side of a fantastic opportunity for what we can implement,” he stated.
Valuation Trends in Indian Markets
India will always trade at a premium to international markets, but it will always produce one of the strongest returns across geographies, according to Mukesh Mehta, senior managing partner at Blackstone.
“In the Indian market, these high valuations will persist. That is solely due to growth and a good return on equity. It will lead at its best when you have both combined, according to Mukesh.
“The Nifty was trading at 25 times price earning last year. It is currently trading at a 20-fold profit. Like every cycle we have seen in private equity, I think public markets have corrected, but there is still a gap between the private and public markets. The private market will eventually begin to mirror public market multiples, he continued.
AI Disruption in Software and Technology Investments
Sood also highlighted another significant upheaval that is posing a parallel challenge to the industry. One of the main sectors of PE investments that is being disrupted by AI is software-as-a-service (SaaS) and IT services, which are expected to overthrow conventional tech services models.
The majority of private market investors’ portfolios include a significant amount of software. You start to wonder how this will develop in the future when you observe such drastic adjustments. A significant portion of the billions of dollars invested arrived at peak valuations in 2021.
Many of these businesses also have high levels of leverage. In order to compete with AI-native businesses, you would think they would be in a race against time to figure out how to incorporate AI into their operations.
“Something like this has had a rippling effect into private credit,” Sood stated, alluding to the global decline in IT stocks over the past 30 to 40 days after Anthropic’s new Claude launched.
Frequently Asked Questions
1. What is causing private equity firms to reevaluate their investment tactics?
Rising geopolitical tensions (like the US-Israel-Iran war), supply-chain disruptions, and quick AI-driven developments in technological sectors are all causing private equity firms to modify their tactics.
2. What makes India a desirable place to invest?
Investors draw attention to India’s robust population, growing capital markets, rising incomes, and long-term growth industries like financial services, healthcare, and consumer goods.
3. How are businesses reacting to the uncertainty of the current market?
Some organizations are strengthening capital structures, delaying new investments, speeding up portfolio company departures, and getting companies ready for flexible exit alternatives.
4. How does AI affect investments in private equity?
Traditional software, SaaS, and IT services models are being disrupted by AI, thus businesses must quickly adopt AI or risk losing their competitiveness to AI-native enterprises.
5. How are Indian market valuations evolving?
Private markets may eventually adjust to reflect these lower multiples when public market valuations have corrected (e.g., Nifty P/E dropped from roughly 25 to 20).
Conclusion
Private equity investors are enthusiastic about India’s long-term growth despite geopolitical uncertainties and AI-driven disruption. Investors continue to perceive significant potential in India’s growing economy and important development areas, despite the country’s current short-term caution and strategy changes.
Disclaimer: This article is for informational purposes only and reflects publicly available information and expert commentary shared at the IVCA Conclave 2026.
