Piramal Group, IIFL Wealth announce Rs 2,000-crore alternative investment fund

By: |
Published: December 12, 2019 5:30:17 AM

With this, Piramal will also be facilitating external capital (on a fund or co-investment basis) alongside its lending business. “This will enable Piramal Group to continue to further grow the lending business through a new co-investment/co-origination model,” the statement said.

Piramal Group, IIFL Wealth, alternative investment fund,  investment fund, market newsKhushru Jijina, managing director at Piramal Capital & Housing Finance, said the creation of the AIF is in line with Piramal Group’s strategy to build newer platforms for co-lending with liked-minded reputed institutions.

Piramal Group and IIFL Wealth Management announced on Wednesday that they will invest in an alternative investment fund (AIF) platform to fund select advance stage or last-mile real estate projects in Tier-1 cities. The AIF will have a target size of Rs 2,000 crore and will be used to provide capital to developers in key markets.

Khushru Jijina, managing director at Piramal Capital & Housing Finance, said the creation of the AIF is in line with Piramal Group’s strategy to build newer platforms for co-lending with liked-minded reputed institutions. “We will initially seed the fund with existing loans from Piramal Group’s portfolio, while continuing to explore quality deals from the market in future.”

With this, Piramal will also be facilitating external capital (on a fund or co-investment basis) alongside its lending business. “This will enable Piramal Group to continue to further grow the lending business through a new co-investment/co-origination model,” the statement said.

Till date, IIFL Asset Management has raised a cumulative assets under management of approximately Rs 7,000 crore across eight real estate funds, a release said. It has fully exited first two funds, generating gross internal rate of return of 18-22%.

The announcement comes at a time when the real estate sector is going through a rough phase, with the cash crunch hitting many developers leading to a number of projects getting stalled. The government recently announced a Rs 25,000-crore AIF aimed at reviving stalled housing projects. The fund has hit its first close of Rs 10,530 crore.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1US replaces Kuwait as India’s 6th biggest oil supplier
2IIFL planning to invest in India’s financial service sector amid grappling credit crisis
3Last hour buying helps Sensex to end at day’s high; check top stocks