Meenakshi Group to Raise ₹700 Crore for Real Estate-Focused Alternative Investment Fund

Hyderabad-based real estate developer Meenakshi Group has announced its plan to raise up to ₹700 crore for a real estate-focused Alternative Investment Fund (AIF) titled the Meenakshi Real Assets Fund. The company has committed to contributing 20% of the corpus as sponsor capital, establishing its financial stake in the fund's operations.

The fund structure includes a base target of ₹350 crore and an additional ₹350 crore under a greenshoe option. It will follow a hybrid investment approach, combining both debt and equity instruments to fund selected real estate projects.

The investment vehicle is set up with a six-year horizon. During this period, the fund plans to invest in 6 to 8 real estate deals. The target investments will include self-liquidating assets, which are projects that have the potential to repay capital through cash flows generated from operations. These projects are expected to offer a mix of income generation and capital growth.

The fund's investment strategy is focused on partnering with Tier I developers. It will concentrate on high-growth micro-markets in key urban centres across India. Each transaction is expected to be valued up to ₹70 crore. The company noted that it is currently reviewing three deals under due diligence, signaling the early progress of the fund’s investment pipeline.

The AIF license allows the Meenakshi Group to offer structured investment products to investors, aligning with regulatory frameworks that govern such funds in India. Alternative Investment Funds are designed to pool in capital from investors for investing in real estate, private equity, or other non-traditional assets, and are regulated by the Securities and Exchange Board of India (SEBI).

Mahesh Katragadda, CEO of Meenakshi Alternates — a division of Meenakshi Group managing the AIF — described the license as a key milestone in the group’s financial strategy. He indicated that the new structure enables the firm to offer institutional-grade, well-structured investment products to the market. According to him, investor response has been encouraging, with three deals currently under due diligence and soft commitments already secured from the Meenakshi Group, its extended network, and early-stage investors.

Mr. Katragadda also emphasized the company’s focus on steady capital deployment, noting that the firm aims to build long-term investor trust by leveraging its established track record in real estate. He added that Meenakshi Alternates is committed to disciplined capital allocation and identifying high-quality investment opportunities that can deliver consistent returns.

The launch of this AIF aligns with a broader trend in India’s real estate investment market, where private equity and alternate funds are becoming increasingly popular sources of capital for developers. This mode of funding provides real estate developers with structured financing options outside traditional bank loans or retail investments.

In addition to providing capital, AIFs are also designed to offer investors managed exposure to real estate through curated portfolios that are actively monitored. The hybrid model pursued by Meenakshi Group allows flexibility in returns while diversifying risk across both debt and equity positions.

The Indian real estate sector, particularly in metro cities and emerging urban centres, continues to attract both domestic and foreign investments. Structured funds such as the Meenakshi Real Assets Fund are positioned to leverage opportunities arising from urban expansion, housing demand, and infrastructure-led growth.

Meenakshi Group, which has been active in the Hyderabad real estate market, is expected to use its regional knowledge and network to identify potential investments. By aligning with Tier I developers, the fund aims to limit execution risk and work with established partners.

The fund is currently open to institutional and high-net-worth individuals (HNIs), with a minimum investment size determined by SEBI guidelines. The performance of the fund will depend on market dynamics, execution timelines, and cash flow realizations from the funded projects.

With this initiative, Meenakshi Group joins a growing list of real estate companies and investment firms entering the AIF space to raise capital in a structured, regulated manner. As the fund progresses, its impact on project execution and investor confidence in the sector will be closely watched.