Opinion | Nepal’s private capital market is growing up. It needs to grow honest
Summary
Nepal’s private capital market has evolved with 19 licensed specialized investment funds but faces challenges in governance, investor expectations, and regulatory fairness. Balancing growth and honesty remains crucial for sustainable development.
Key Points
- Nepal's private capital market has grown to 19 licensed Specialized Investment Fund managers under SEBON oversight.
- Development Finance Institutions played a catalytic role introducing capital, credibility, and governance standards.
- Mislabeling growth equity investments as PE/VC creates misaligned expectations for investors and managers.
- Structural issues exist such as fund lock-in periods inflating returns and risks due to fixed fund timelines pressuring deployment decisions.
