Altern Capital introduces its first Real Estate fund with a target of Rs.250 crore

Altern Capital, a real estate investment management firm based in Bengaluru, has announced the launch of its first fund, aiming to raise a total of Rs.250 crore, according to a statement released on July 16.

The Securities and Exchange Board of India-approved Category II Alternative Investment Fund (AIF) is called Jiraaf Au India Real Estate Fund - I. It will also include an additional greenshoe option of Rs.100 crore, the company stated. 

An Alternative Investment Fund (AIF) is a privately pooled investment vehicle that collects funds from Indian or foreign sources to invest in alternative asset classes, including private equity, venture capital, hedge funds, real estate, commodities, and derivatives. In India, a Category II AIF encompasses entities like private equity or debt funds that do not receive specific incentives or concessions from the government or regulators.  

AI Growth Private Limited, through its brands Jiraaf and Altgraaf, is the sponsor of the fund, according to a statement issued by the company.

According to Altern Capital, the core strategy for the fund focuses on plotted development and last-mile funding. With a four-year tenor, the fund aims to minimize approval and execution risks, the statement noted.

“Our goal at Altern Capital is to redefine real estate investment through rigorous tech-based investment processes and post-investment monitoring, while delivering exceptional risk-adjusted returns for our investors,” said Navin Dhanuka, Founder and CEO of Altern Capital.

The team expects to make significant investments in plotted development across cities such as Bengaluru, Chennai, Hyderabad, and Mysuru, according to the company statement. This will be followed by last-mile funding initiatives in Bengaluru, Mumbai, Pune, and Chennai, it added.

Altern Capital noted that there has been strong and growing demand for plotted development in Bengaluru and Mysuru, with quick sales even at the launch stage. This trend has led to increased interest in such projects from Grade A developers, including listed companies, over the past 3-4 years.