Limited Partners (LPs) or institutional investors investing in Indian private equities warn about the euphoria building around the asset class.

Such a warning is not without a reason as the heightened interest seen around private equity currently reminds the 2007-08 period—the go-go days for the industry with investments made at the peak of the asset prices with most of them being under water now.

LPs caution that Indian public markets have run a little ahead of themselves and that private equity fund managers should not repeat the mistakes that they have made before.

While everything looks good in a bull market, LPs assert that PE fund managers need to learn that long-held assumptions and complacencies can and will fall apart in a subprime ambience. 

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