Alternative investment funds in India: private equity (PEs) and sovereign wealth funds (SWFs)

Abstract

Alternative investment assets, in their broadest definition, are those assets which are not considered part of conventional asset classes such as cash, stocks or bonds. This definition encompasses investing in assets such as real estate, commodities or even luxury goods such as wine or art. Alternatives will also be those which only wealthy individuals and institutions have have access to and encompasses a wide range of asset classes, including private equity (PEs), hedge funds (HEs) and venture capital (VCs). Another category of alternative investment asset - Sovereign Wealth Funds (SWFs) - are a novel form for governments to pursue their interests both at home and abroad. They represent not only an economic interest of a government but also embody the power vested in the financial resources as well as the diplomatic resources they deploy. Of all the alternative investments categories, SWFs demonstrate the most contradictory pressures and their complex outcomes.