News Column

Reliance Capital Launches First AIF

August 13, 2014

@RelianceCapital Asset Management (RCAM) has launched its first alternate investment fund (AIF) through RCAM's subsidiary, Reliance AIF Management Company. The company is targeting to raise over INR 50 Bn through the fund in the next three years.

The fund aims to generate an IRR in the range of 20-24% on the underlying investments.

The fund seeks to invest in a portfolio of relatively high-yielding securities, issued by companies participating predominantly in the residential real estate sector.

RCAM is the asset management arm of financial services major Reliance Capital, a part of the Anil Ambani-controlled Reliance Group. As of June 2014, RCAM had raised and deployed over INR 12 Bn under real estate based strategies and offered at an attractive IRR range of up to 27%.

The real estate sector is gearing up with many PE funds lined with fund raising plans.

ASK Group had raised INR 5 Bn in structured debt for investing into residential projects, taking the fund corpus of the financial service arm to INR 2,150 Mn.

Pension fund manager APG Asset Management along with PE firm Xander Advisors India had launched a $300 Mn India office fund.

Essel Financial Advisors and Managers, PE arm of Essel Finance was in the process of raising two realty funds - R500 Cr domestic fund and a foreign fund of $200 Mn which will focus on investing in residential projects in top six cities in the country.

IDFC's PE arm IDFC Alternatives had raised its realty fund with a corpus of INR 7,500 Mn focusing on the residential sectors in India.

Motilal Oswal Real Estate had announced the first close of second realty fund, India Realty Excellence Fund II by raising INR 2,250 Mn.

Kotak Investment Advisors Ltd was planning to raise $200 Mn for its PE fund to invest in India's residential properties in cities like Mumbai, Delhi, Bangalore and Pune..

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Source: DealCurry (India)

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