Altern Capital Launches Maiden Real Estate Fund with a Target of ₹250 Crore

Bengaluru-headquartered real estate investment management firm Altern Capital has announced the launch of its maiden fund, targeting a total of ₹250 crore. This fund, named Jiraaf Au India Real Estate Fund - I, is sponsored by AI Growth Private Ltd and has an additional greenshoe option of ₹100 crore.

The fund is approved by the Securities and Exchange Board of India (SEBI) as a category II alternative investment fund (AIF). AIFs are privately pooled investment vehicles that invest in alternative asset classes such as private equity, venture capital, hedge funds, real estate, commodities, and derivatives. Category II AIFs in India include private equity funds or debt funds that do not receive specific incentives or concessions from the government or other regulators.

Navin Dhanuka, founder and CEO of Altern Capital, emphasized the firm's goal to redefine real estate investment through tech-based stringent investment and post-investment monitoring, aiming to deliver exceptional risk-adjusted returns for investors. He stated, “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.”

The fund's core strategy focuses on plotted development and last-mile funding. With a four-year tenor, the fund aims to reduce approval and execution risks. Significant deployment is anticipated in plotted development across Bengaluru, Chennai, Hyderabad, and Mysuru, followed by last-mile funding initiatives in Bengaluru, Mumbai, Pune, and Chennai.

According to Altern Capital, there is strong demand and quick sales for plotted development projects in Bengaluru and Mysuru, attracting significant interest from Grade A developers, including listed players, over the past 3-4 years. This growing demand is reflected in the rapid sales observed at the launch stages of such projects. The firm expects its strategic focus on plotted development and last-mile funding to yield substantial returns for its investors.

In addition to its primary strategy, Altern Capital is also exploring opportunities in other areas of real estate investment. The company plans to leverage technology to enhance its investment processes, ensuring that investments are carefully monitored and managed to maximize returns. This tech-driven approach is expected to set Altern Capital apart from other players in the real estate investment market.

The company also highlighted the importance of reducing approval and execution risks in real estate projects. By focusing on these aspects, Altern Capital aims to ensure that its projects are completed on time and within budget, thereby minimizing potential losses for investors. The fund’s approach to risk management is designed to provide investors with a higher degree of confidence in the success of their investments.

Furthermore, the fund’s last-mile funding strategy is intended to address the common issue of projects stalling due to a lack of final-stage financing. By providing the necessary capital to complete these projects, Altern Capital aims to unlock value and deliver returns to its investors. This strategy is particularly relevant in the current real estate market, where many developers face financial constraints that hinder project completion.

The anticipated deployment in plotted development and last-mile funding will not only benefit investors but also contribute to the overall growth of the real estate sector in the targeted cities. This growth is expected to have a positive impact on local economies, creating jobs and stimulating economic activity.

As the fund begins its operations, Altern Capital will be closely monitoring market conditions and adjusting its strategies as needed to ensure optimal performance. 

Image source- Pinterest