MUMBAI, April 15 -- Big investors are no longer content to just back funds, they increasingly want to invest directly in the deals those funds pursue.

In India's private markets, this push for co-investment rights is giving limited partners (LPs) more control over where their money goes and better economics, while encouraging fund managers to offer such access to secure commitments and execute larger deals. What was once optional is quickly becoming standard in fund negotiations.

"Co-investment has become almost a common ask by investors in any new fund raise. The LP while negotiating commitments, also insists on a meaningful co-investment right and makes adequate provision for the same," said Siddharth Shah, senior partner at law firm ...