Bengaluru-headquartered real estate investment management firm, Altern Capital, has introduced its maiden fund, targeting a corpus of ₹250 crore. The fund, named Jiraaf Au India Real Estate Fund – I, has been approved by the Securities and Exchange Board of India (SEBI) as a Category II alternative investment fund (AIF) and includes an additional greenshoe option of ₹100 crore.
An alternative investment fund (AIF) is a privately pooled investment vehicle that sources its capital from Indian or foreign investors to invest in alternative asset classes, such as private equity, venture capital, hedge funds, real estate, commodities, and derivatives. Category II AIFs in India typically include private equity funds or debt funds, which do not receive specific incentives or concessions from the government or any other regulator.
AI Growth Private Limited, operating through its brands Jiraaf and Altgraaf, sponsors the Jiraaf Au India Real Estate Fund – I. According to Altern Capital, the core strategy for this fund revolves around plotted development and last-mile funding. With a four-year tenor, the fund aims to mitigate approval and execution risks, ensuring robust investment returns.
“Our goal at Altern Capital is to redefine real estate investment by ensuring tech-based stringent investment and post-investment monitoring and delivering exceptional risk-adjusted returns for our investors,” said Navin Dhanuka, founder and CEO of Altern Capital.
The company plans significant deployments in plotted development across Bengaluru, Chennai, Hyderabad, and Mysuru. This will be followed by last-mile funding initiatives in Bengaluru, Mumbai, Pune, and Chennai.
Altern Capital’s statement highlighted the growing demand and rapid sales for plotted development in Bengaluru and Mysuru, even at the launch stage. This has generated considerable interest in plotted development projects from Grade A developers, including listed players, over the past three to four years.
By leveraging technology for stringent investment and post-investment monitoring, Altern Capital aims to deliver risk-adjusted returns and redefine real estate investment for its investors. The fund’s strategic focus on plotted development and last-mile funding is poised to tap into the increasing demand and market dynamics of these cities, positioning it as a significant player in the Indian real estate sector.
