Piramal Group and IIFL Wealth Management has floated co-investment Alternative Investment Fund (AIF) platform to fund select advance stage and last-mile real estate projects across Tier 1 cities in India.
The proposed AIF will have a target size of Rs 2,000 crores, will be used to provide much needed capital to tier 1 builders across select markets.
Khushru Jijina, Managing Director, Piramal Capital & Housing FinanceNSE -0.22 % Ltd said, “The creation of this 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.
Karan Bhagat, Founder, MD & CEO, IIFL Wealth Management said, “Piramal’s deep domain expertise in real estate and IIFL Wealth’s ability to seize the best market opportunities have resulted in well-structured investment idea which will provide clients an ideal risk-adjusted return.”
IIFL Wealth is one of the leading wealth managers in the country today, with aggregate assets of around Rs 1,70,000 crores under management, advice and distribution. IIFL Asset Management has raised a cumulative AUM of Rs 7000 crores across 8 real estate funds, till date. Of which, it has fully exited first two funds, generating gross IRRs of 18-22%.
Piramal Group has a long-standing track record of both primary development and wholesale funding in real estate. It also has a fiduciary fund management business across multiple funds and mandates across structured, preferred and pure equity.