Peak XV Partners has announced a strategic decision to resize their 2022 vintage growth funds by 16% due to the elevated valuations in the Indian public markets.

In a post on X (formerly Twitter), the firm said: “In the context of a richly priced public market in India, we are investing in a measured manner in our growth fund, while we continue to lean in on seed and venture stage opportunities. As a result, we have made the decision to re-size our 2022 vintage funds by 16%. We have also decided to make some part of our carried interest linked to the distribution of profits in our growth and multi-stage funds while leaving our seed and venture fund economics unchanged.”

In doing so, Peak XV Partners (formerly Sequoia Capital India & SEA) aims to ensure that both their founders and limited partners (LPs) are served well over the long term.

Despite this, the firm said it would remain highly committed to investing in India and Southeast Asia, driven by strong portfolio performance and an optimistic outlook.

Additionally, part of the firm’s carried interest will now be linked to the distribution of profits in their growth and multi-stage funds, while maintaining the existing structure for seed and venture fund economics.

This move reflects Peak XV’s adaptability in response to changing market conditions while continuing to prioritize investor and entrepreneur success.

A large non-profit limited partner expressed their support for Peak XV’s decision, emphasising the firm’s alignment with its partners and its consistent ability to generate strong returns for investors while nurturing successful entrepreneurs.