NEW DELHI: JM Financial Asset Management Company is enhancing its Alternative Investment Fund (AIF) platform by launching a Rs 1,000 crore early-stage real estate fund to fill the financing gaps in the sector.
According to Amitabh Mohanty, MD and CEO of JM Financial Asset Management Ltd, “Our aim is to develop a comprehensive AIF ecosystem that facilitates India’s next wave of enterprise growth. We are formulating thematic strategies that are backed by real assets and focus on non-traditional opportunities,” as reported to PTI.
The AIF platform will provide specialized capital pools targeting credit, real estate, and pre-IPO opportunities, he noted.
JM Financial’s early-stage real estate fund leverages over a decade of experience in managing real estate credit. Mohanty explained that this fund aims to close the capital gap often faced by traditional lenders due to regulatory limitations.
The fund seeks to raise Rs 1,000 crore and aims for an initial close of Rs 500 crore. The funds will be allocated to providing debt capital to established developers in metropolitan areas, addressing their land acquisition and approval costs.
There has been strong interest from both institutional investors and high-net-worth individuals (HNI) in the fund, he added.
The asset management firm has also submitted its first pre-IPO fund application and a follow-on performing credit fund application with SEBI. The pre-IPO fund is designed to invest in companies with an 18-month timeline leading up to an IPO.
The first performing credit fund is on track to deliver target returns as per its investment objectives, with several investments already exited.
“Alternatives will remain a top priority for our group. We are heavily investing in building specialized teams, establishing robust risk management systems, conducting thorough due diligence, and enhancing investor experiences across all platforms. With increasing investor participation and demand for flexible capital, our expanded AIF platform will play a crucial role in supporting India’s growth over the next decade,” he stated.
