For private equity, India has emerged as the star performer, says JP Morgan's global head of advisory and M&A Anu Aiyengar

Anu Aiyengar, Global Head of Advisory & M&A, JP Morgan

“M&A was traditionally a male bastion—often cigar-smoking men in suspenders—and now she is at the top of the field, because she is simply outstanding at what she does," none other than JP Morgan's top boss Jamie Dimon said that about Anu Aiyengar, then co-head, global mergers and acquisitions at the firm, in a profile by Bloomberg in 2020.

Circa 2025, Aiyengar has soared higher and is now the global head of advisory and m&a at the Wall Street powerhouse, leading a practice of 500-plus bankers in 45 countries.

Since joining the firm in 1999, she has advised both domestic and international clients on more than $1 trillion worth of transactions, including Allergan on its $63 bn sale to bio-pharma major AbbVie and French luxury giant LVMH on its $16 bn buyout of iconic American jeweller Tiffany.

In an exclusive interview with Moneycontrol's Ashwin Mohan, New York-based Aiyengar, who grew up in Kerala, says that inbound acquisition interest in India from Japan and the Middle East has been high as it is 'the only emerging market of scale with a unique combination of growth and stability.'

'India has had a predictable policy regime under Mr. Modi’s leadership and that supports investment and deal activity ," she adds, saying the country is viewed as a 'defensive play' due to its domestic consumption-driven economy, partially insulating it from global tariff volatility and geopolitical risks.

Aiyengar also elaborates on the triggers behind India emerging as the largest and the highest IRR ( internal rate of return) market in APAC for several financial sponsors or private equity firms. Going ahead, tech , healthcare, infra and financial services are her top sectoral picks for m&a in India.(Edited Excerpts)

The deal market thrives on stability and certainty, which seem to be below par across regions, especially from a geopolitical lens. As global head of advisory & M&A at a Wall Street powerhouse like J.P. Morgan, what are some of the key challenges and risks that you foresee for dealmaking in the current environment?

The M&A markets have demonstrated remarkable resilience despite facing significant policy volatility, geopolitical risks, and macroeconomic and trade uncertainty. The first quarter was strong, followed by a brief pause in April and the first half of May, but the second quarter closed strong, resulting in an overall deal volume increase of 27 per cent year-over-year to $2.2 trillion for the first half of 2025. Majority of global M&A activity this year has been driven by larger deals and specific sectors, including Technology, Industrials and Financial Services.

Overall, we expect corporate clients to continue pursuing strategic growth. Profit margins in developed markets are near record highs, corporate balance sheets are robust, and our clients have access to funding. Equity market valuations have been strong in both the US and Indian markets. Sponsors outside India have continued to be cautious about monetization's, waiting for more certainty and robustness in the US and European IPO markets, but the summer has brought some signs of hope.

Going ahead, are you betting on a Y-o-Y rise in global M&A volumes and value in the second half of the year after the pause button was pressed earlier due to tariff tensions? If yes, what are the themes which would spur increased deal activity and which would be the most active geographies?

For the health of the broader markets, we are looking to have more certainty around trade and macro policy, as well as a resolution or tapering of geopolitical tensions. Continued strength in the capital markets, second-quarter results, and the resilience of the consumer during the back-to-school season will be closely monitored.

We expect M&A to remain active in the second half, with key drivers including clarity around trade policies, a more predictable regulatory environment, stabilizing interest rates, and the need for supply chain control, near-shoring, tech capabilities (particularly AI), and market premiums for consistent profitable growth at scale.

North America remains strong, with the US accounting for a significant portion of deal volume, supported by robust institutional investor interest and favourable market conditions. Uncertainty in select market segments is also expected to drive dealmaking, with increased activism, sponsors exploring innovative exit alternatives, creative transaction structures, and a rise in take-privates. The Asia-Pacific region, particularly India and Japan, is expected to be active due to its unique combination of growth and stability.

Most banks believe that India remains the fastest growing economy, and one firm recently forecasted real GDP growth at 5.9 per cent, Q4/Q4 in 2025 and 6.4 per cent in 2026. What is your take on the prospects of the Indian economy?

India has benefited from a confluence of factors that have all come together over the last decade and positioned India well to be a developed economy by 2047. Indian economy benefits from a large consumer base and services exports, but importantly, the Government’s targeted policy reforms, digital transformation at scale, 'Make in India' initiative, energy transition and infrastructure push have really helped India become a sustainable engine for global growth.

India is viewed as a 'defensive play' due to its domestic consumption-driven economy, partially insulating it from global tariff volatility and geopolitical risks. We expect services exports to grow consistently for India’s technology industry, and the shift in manufacturing value chains and hence growth in manufacturing exports will really provide a big opportunity for India. The Indian government’s continued push to set up enabling infrastructure, including physical, digital, financial and social infrastructure, is driving our confidence in India’s growth.

Where does India stand today as an investment destination in the eyes of global investors and your clients when compared to other jurisdictions?

India has a strategic position in the Asia Pacific region and our global clients, both financial and strategic clients, continue to view India as a very critical part of their portfolios. There is a heightened degree of dialogue around India in global boardrooms and clients want to use India as a hub for growth, for global supply chains, for technology and for talent.

For private equity, India has emerged as the star performer, leading to ~$40 billion of annual investments ( for 2024). In fact, for many of the financial sponsors, India is indeed the largest and the highest IRR ( internal rate of return) market in APAC. Multiple factors drive that – predictability of the policy regime under PM Modi’s leadership, opportunity to take controlling positions, and certainty of exits backed by a well-functioning capital market. Vibrant capital markets support long-term growth and innovation, and India has had one of the most active public markets globally in recent times.

It is quite amazing to see how public markets are enabling M&A in India by providing a robust avenue to raise capital to fund M&A and for sponsors to exit their investments. We have seen a consistent increase in India in the number of large, listed companies and those companies’ appetite to use their listed currency to pursue growth. India is no longer dependent on foreign investment flows. In most of the recent $1+bn capital market transactions that we led, the majority of demand came from domestic institutions, who have scaled up really well.

When it comes to cross-border M&A, how busy do you expect the Indian market to be, both in terms of MNC's eyeing Indian targets and Indian corporates looking to shop overseas?

Despite geopolitical uncertainty, cross-border activity globally remains very active, and H1 volume increased 23 per cent YoY and accounted for 25 per cent of total M&A volumes. India has certainly been a favourite destination for our global clients, including both strategic and private equity clients, and remains very high on the agenda for global boardrooms.

MNCs have been very active in Indi,a and most of them already have a significant presence – they are actively managing their India portfolio to enhance their India currency. Indian subsidiaries are using the Indian balance sheet and stock to fund growth in India, including for acquisitions in India. Inbound acquisition interest in India has been high from Japan and the Middle East, with similar underlying themes – needing to invest out of the local economy, and India beingthe  only emerging market of scale with a unique combination of growth and stability.

On the second part of your question, Indian corporate clients have a strong balance sheet and a valuable acquisition currency, which is driving their appetite to pursue strategic growth in India and overseas. While we will see a lot more investment within India, we are starting to see select outbound dialogue with Indian companies looking to capitalize on once-in-a-generation opportunities arising from geopolitical shifts

Last year in October, Hyundai Motor India, the Indian arm of the South Korean auto major, made its market debut with a $3.3-billion issue, India's biggest ever IPO. Others like Norway's Orkla and consumer electronics giant LG are also evaluating listings on Dalal Street. How sustainable is this trend of global MNCs being opportunistic about better multiples in India and pushing for domestic listings?

MNC clients are not being opportunistic by listing their businesses in India – rather they are being strategic with a local listing. MNCs are actively managing their India portfolio to enhance their India currency as they deepen and localize their presence in India. We expect clients to continue to use India business to fund growth in India and outside India, leveraging robust businesses and capital markets in India.

India is one of the most vibrant IPO markets globally and we expect it to continue to deepen its base over time with a strong shift towards financial savings and a natural shift of ownership of businesses from promoters to financial institutions.

How would you describe India's policy and regulatory environment under PM Narendra Modi's regime? Any additional aspects or global best practices that India could consider to make it a friendlier investment and deals destination?

India has had a predictable policy regime under Mr. Modi’s leadership and that supports investment and deal activity. The government has put the key enablers for growth in place with "Make in India" initiative, digital infrastructure and physical infrastructure and we expect it to drive a conducive environment for growth for the country.

India has a strong strategic position in the Asia-Pacific and its commitment to innovation and sustainability has enhanced its appeal as an investment destination. We are confident that India has all the ingredients in place to move to become a developed economy.

Globally, how serious and rapid is the tilt of bulge bracket private equity players to private credit as a strategy, which would provide flexible financing options to corporates and acquirers, and what opportunities do you see in this segment when it comes to India?

The convergence of the syndicated and private financing markets is creating unprecedented opportunities for clients and we are supporting our clients with solutions that best meet their capital structure needs. At J.P. Morgan, we made a significant $50 billion commitment to the private credit markets earlier this year, deploying it alongside our market-leading leveraged finance position.

Private equity firms have enjoyed ample access to financing, with capital readily available in both leveraged finance markets and private credit markets and private equity firms are also participating in the private credit world. In the Indian markets, private credit can also play a crucial role alongside traditional bank lending, offering flexible solutions. As buyers and sellers seek to bridge valuation gaps, private credit can fill structural gaps that the bank or bond market may not be able to address in specific situations. We have a strong team in India dedicated to providing financing solutions, and private credit is an integral part of our playbook here.

What are your top three sectoral picks for M&A activity in India for the remainder of FY26?

My three sector picks would be:

• Technology, driven by digital transformation and new-age companies, with companies leveraging emerging technologies like AI, cloud, and cybersecurity to expand capabilities and drive innovation. India’s role as a global champion in technology services will be critical over the next decade as an enabler of AI transformation
• Healthcare remains resilient and active across services, pharma, and technology, supported by under-penetration and strong interest from both financial and strategic investors.
• Businesses that enable India’s growth, i.e., Infrastructure and Financial Services, have been a preferred sector for financial sponsors and we expect that to continue

What are the priorities of JP Morgan India in the advisory and M&A space when it comes to market share, diversification in new segments and expansion?

We are deeply focused on serving our clients in India and being their trusted advisor in an increasingly complex global business environment. Businesses of our clients are evolving with the changes in the geopolitical landscape and the transformation in technology, and we want to help our clients capture the opportunity presented by this shift. We have invested in building a very strong local Investment Banking business in India with a large team on the ground, which is fully integrated with the strength of our global network across sectors. We have a strong practice across M&A, Equity Capital Markets and Debt Capital Markets in India with #1 position in Investment Banking over 2020-2025.