ASK Property Fund Launches ₹3,500 Crore Real Estate Debt Vehicle Amid Rising Private Credit Demand

ASK Property Fund, a part of Blackstone-backed ASK Asset & Wealth Management, has launched its largest real estate debt vehicle to date, aiming to raise a corpus of ₹3,500 crore. This new fund, ASK's fourth debt fund, is set to capitalize on the growing demand for private credit and a healthy pipeline of projects in the Indian real estate market.

The fund will raise capital from both domestic and offshore investors and will focus on mid-segment housing projects across major cities including Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Pune, Bengaluru, Chennai, and Hyderabad. The fund includes a green-shoe option of ₹1,500 crore, allowing it to scale up to ₹5,000 crore if needed. Deal sizes are expected to range from ₹100 crore to ₹500 crore.

Amit Bhagat, co-founder, managing director, and chief executive of ASK Property Fund, emphasized the high demand for growth capital and the strong pipeline of potential investments. “It was time for us to raise a larger fund. The outperformance of our earlier debt funds, along with Crisil’s fund management grading-1 for the new fund, demonstrates the strength of our underwriting discipline, active asset management, and risk management framework,” Bhagat added.

According to the EY Private Credit Report, the private credit market closed at $12.4 billion across 166 transactions in 2025, marking a 35% year-on-year increase in value. Real estate, healthcare, and industrial sectors were the primary contributors, driven by refinancing, acquisition financing, and capital expenditure funding. A Credit Pulse Survey by EY in December 2025 indicated that fund managers continue to view real estate as the most active sector in terms of deal flow, despite considering it the riskiest.

“Everyone wants to be in the credit space. It is asset and cash-flow-backed. Investors will differentiate us based on our grading and our track record with previous funds,” Bhagat noted. Even as the demand for private credit continues to rise, the residential real estate market has faced challenges. Anarock Property Consultants reported a 14% decline in home sales in the top seven cities in 2025, attributed to factors such as hardening property prices, layoffs in the IT sector, and geopolitical tensions.

The new fund will offer both solution capital, including lender replacement and project completion funding, and growth capital for acquisitions, particularly for projects stalled in the National Company Law Tribunal (NCLT) or those with established approvals. The fund is designed to meet capital needs across selected residential opportunities while targeting investment-level returns of 20%.

ASK Property Fund has a strong track record, with its last three debt funds raising a cumulative ₹3,600 crore and executing 30 transactions. Over the past two years, the firm has raised ₹2,500 crore across debt and equity strategies. In 2025-26 alone, ASK committed ₹2,100 crore across projects and delivered ₹1,300 crore in exits to investors.

Earlier this week, investment firm Arnya Realestates Fund Advisors announced plans to launch its second debt fund this year, aiming to raise ₹1,000 crore, as reported by Mint. This move underscores the growing interest and confidence in the real estate debt market, despite the challenges faced by the broader residential sector.

ASK Property Fund's new initiative is a strategic move to capitalize on the robust demand for private credit and the potential for high-yield investments in the real estate sector. With a focus on mid-segment housing projects and a strong track record, the fund is well-positioned to attract both domestic and offshore investors.