Rutley Capital Partners this week launched a $1 billion (€690 million) Indian real estate fund.
The firm, which is the private equity real estate arm of Knight Frank, says it is looking to raise $300 million of equity to seed the fund, which is targeting a net internal rate of return in excess of 20 percent.
The fund will have a seven year lifespan and will invest in residential and mixed-use development schemes in several Indian cities including Chennai, Bangalore and Pune. The residential sector in India is facing a significant supply-demand imbalance, with a growing middle class eager to buy homes for the first time.
The firm will operate the fund in keeping with its general practice of leveraging off the market presence and Indian investment experience of its parent company, global property services firm Knight Frank. Knight Frank has an established presence in India, employing 650 people in five offices spread throughout South Asia.
The fund is being launched as part of a strategy to target emerging markets. The firm has also made inroads in going after Africa and Brazil. In October the firm announced it is preparing to lauch a quoted African office property fund targeting Kenya, South Africa, Tanzania and Namibia.