Mumbai, Aug. 26 -- India's private equity space, long seen as underperforming in actual returns despite matching China on paper gains or unrealised profit, is now proving its mettle, prompting global players like LGT Capital Partners to double down on the market.

"Our long-term returns from India have been largely on par with those of China. However, distributions have been a bit slower, largely because exit markets took time to open up," Peter Lui, partner and APAC head for LGT Capital, said in an interview with Mint. "In the last couple of years, the Indian IPO market has become a meaningful exit avenue, and so the pace of distributions has improved."

The Switzerland-based firm has ramped up its India exposure across both its APAC-foc...