Confidence in the Numbers:Rishi Aswani’s Take on Valuations in India

As India’s private markets mature, valuations have become one of the most scrutinised and debated aspects of the ecosystem. Global investors are demanding greater transparency, regulators are sharpening their focus, and fund managers are adapting their practices. In this edition, Rishi Aswani, Managing Director – Financial and Valuation Advisory, Houlihan Lokey, shares his perspective on how valuations are evolving, the growing role of independent advisors, and what structural shifts will shape the next decade of private capital in India.

Subjectivity around private investment valuations continues to be a hot topic and an unavoidable feature of the exercise, especially as these investments reside within close-ended vehicles. “Many Limited Partners (LPs) are now co-investors, and increasingly questioning valuation marks provided by their General Partners (GPs) in India — particularly when mismatches emerge around exits or IPOs.” With fund lives stretching into the realm of secondaries, he notes, a lack of credible private asset marks are also being blamed as contributors to sluggishness around distributions and future commitments.

To their merit, GPs on the ground have evolved their controls with added team members on governance and exits, central to all of which lies a repository of carrying values based on a valuation exercise. Many are moving away from the simplistic “last round” pricing of earlier years. Yet, reconciling global standards with local practices is still an evolving situation on the ground. “We see many GPs divert a precious amount of their time getting their LPs and auditors comfortable with their marks,” says Aswani. “That’s why more of them — even without a regulatory mandate — are turning to independent valuers to advise them on this critical management function.”

Regulators too are increasingly engaged. The focus in India, Aswani points out, has been “a lot on the principles, rather than the principals themselves.” By contrast, other jurisdictions hold Boards and fund managers directly accountable for their internal policies and procedures as well as their implementation and disclosures. A similar shift in India, he suggests, may be necessary as the AIF ecosystem scales.

Private credit presents another area where managers are questioning the status quo on valuations. “Private credit valuation guidelines are notoriously thin across the globe, which is why we distilled our experience into a practice aid for the IVCA to supplement the IPEV Valuation Guidelines, dedicating a chapter to debt valuations across a number of strategies’, says Aswani.

Technology is also reshaping reporting expectations. In developed markets, interval funds and listed vehicles already offer daily, weekly, or monthly pricing. “While valuation technology is abundantly available, India has some way to go in building the reporting and monitoring plumbing, and regulatory frameworks that require a more frequent cadence than reporting quarterly NAVs,” says Aswani.

Looking ahead, he sees a period of simultaneous expansion and consolidation. “Private markets will expand, see spin-offs and consolidate at the same time. Larger players and specialist advisors will shape pricing practices, while legacy approaches are phased out. The eco-system and regulators are working hard towards improving confidence in what is reported. Given our experience in this space, we’re seeing a lot more inbounds.”

At a time when transparency and credibility in valuations are central to sustaining global investor confidence, the expertise of firms like Houlihan Lokey is helping shape stronger practices for India’s private capital ecosystem. By contributing to frameworks such as IVCA’s valuation practice aid and driving dialogue on global best standards, their work reinforces IVCA’s commitment to building a robust, trustworthy, and future-ready market — one where valuations not only reflect numbers, but also inspire confidence in India’s growth story.

AltCap Counsel by IVCA
Behind every successful fund, complex deal, or policy shift lies a web of legal, tax, and strategic insight—often invisible, always essential. Welcome to AltCap Counsel by IVCA – an interview series spotlighting the advisors shaping the alternate capital ecosystem from behind the scenes. In this curated column, we sit down with leading Partners and Practice Heads across law, tax, and consulting firms—IVCA Knowledge Partners—to decode the big questions shaping alternate capital industry. From navigating regulatory grey zones to innovating fund structures and anticipating global shifts, these are the minds behind the mandates. Each edition captures practical wisdom, sharp perspectives, and the evolving role of advisory firms in powering India’s investment engine. To share feedback, connect with paromita.sinha@ivca.in