Indiabulls Asset Management, the Mumbai-based asset manager, is on the cusp of closing its maiden debt-focused private equity real estate fund on INR6 billion (€81.5 million; $90 million), PERE can reveal.
The firm has been able to raise more than the initial INR5 billion fundraising target set for the vehicle when it was launched earlier this year in January. An official final closing will be held in January next year.
The capital is understood to have been raised from a total of 140 investors, which include high-net-worth domestic investors, family offices and institutional investors. Some of the high-net-worth investors have also committed smaller checks of INR10 million to INR20 million to the vehicle.
The fund was launched with a strategy of lending to developers for residential projects across major cities in India. The fund corpus will be deployed in a total of five investments, which include under-construction residential projects, in Mumbai, Delhi, Bangalore, of which three investments have already been made and the remaining two are in the negotiation process.
Meanwhile, the firm is also plotting the launch of two new private equity real estate funds for debt and mezzanine investments in the residential sector. Marketing for the domestic fund with a INR5 billion fundraising target is expected to start by early next year while the firm’s maiden offshore vehicle will be launched by April with a target of around $250 million.
Indiabulls Housing Finance, the parent company of Indiabulls Asset Management, which has been an active lender in the real estate financing space, launched its alternative investment fund business in November 2014 and went on to hire Ambar Maheshwari to lead the new venture. Maheshwari came on board from property advisory firm Jones Lang LaSalle India where he was managing director of corporate finance.