Patria Investments Limited Joins Russell 2000 Dynamic Index with Cayman Islands-Based Global Alternative Investment Company

Patria Investments Limited (NasdaqGS:PAX) has been added to the Russell 2000 Dynamic Index. As a Cayman Islands-based global alternative investment company, Patria Investments offers a range of products, including private equity, infrastructure, credit, public equities, real estate, and global private markets solutions. The company aims to provide portfolio diversification and consistent returns for global and Latin American investors.

Private equity (PE) investments in the Indian real estate sector fell by 41% year-on-year (Y-o-Y) to USD 1.7 billion in the first half of 2025 (H1 CY25), according to a report by Knight Frank India. This decline, driven by global macroeconomic pressures, highlights a broader structural shift in capital views of the Indian real estate market [1].

The number of transactions also dropped sharply from 24 in H1 CY24 to 12 in H1 CY25, indicating increased selectivity in deal-making. While overall capital deployment declined, the office segment stood out with USD 706 million invested across three transactions, marking a 22% Y-o-Y increase from USD 579 million in H1 CY24. The residential segment saw a 41% Y-o-Y decline to USD 500 million [1].

Western institutional capital receded further in H1 CY25 due to factors such as the narrowing India-US yield spread, rupee depreciation, and India’s 12.5% long-term capital gains tax. Meanwhile, domestic capital accounted for 25% of total PE inflows during H1 CY25, up from an average of 11% during 2011-2020, driven by deeper capital pools, regulatory stability, and maturing investment capabilities [1].

Shishir Baijal, chairman and managing director of Knight Frank India, noted that the current global economic environment has led many Western funds to adopt a cautious stance, resulting in subdued private equity activity. However, India’s commercial real estate market continues to show strong fundamentals, driven by the return to office, rising absorption levels, and strengthening rental values [1].

The Indian warehousing sector saw a sharp pause in H1 CY25, with PE investments marking a 97% Y-o-Y decline to USD 50 million. Only one transaction was recorded, highlighting a temporary reassessment of growth expectations. Retail real estate equity inflows reached USD 481 million in H1 CY25, driven by two large transactions [1].

Baijal expects global capital flows to return to Indian real estate as macroeconomic conditions in the West begin to ease, further supported by the country’s sustained growth and improving regulatory clarity [1].

References:
[1] https://www.business-standard.com/industry/news/private-equity-flows-into-indian-real-estate-fall-41-in-h1-cy25-report-125062600957_1.html