JM AMC Expands AIF Platform with Rs 1,000 Crore Real Estate Fund
JM Financial Asset Management Company is expanding its Alternative Investment Fund (AIF) platform with the launch of a Rs 1,000 crore early-stage real estate fund. This move is designed to address the sector's financing gap, a critical issue in the Indian real estate market.
The fund, which capitalizes on JM Financial's over a decade of expertise in managing real estate credit, aims to bridge the capital gap that traditional lenders are unable to address due to regulatory constraints. The fund will focus on providing debt capital to established developers in metro cities, specifically for land acquisition and approval costs.
Amitabh Mohanty, MD and CEO of JM Financial Asset Management Ltd, stated, “Our objective is to build a comprehensive AIF ecosystem that supports India's next phase of enterprise growth. We are creating strategies that are thematic, real asset-backed, and focused on non-traditional opportunities.” The AIF platform will offer specialized pools of capital across various sectors, including credit, real estate, and pre-IPO opportunities.
The real estate fund has already garnered strong interest from both institutional and HNI/family office segments. The fund aims to raise Rs 1,000 crore, with a likely first close of Rs 500 crore. The proceeds will be utilized to provide debt capital to established developers in metro cities, helping them meet their requirements for land acquisition and approval costs.
In addition to the real estate fund, JM Financial has also filed its maiden pre-IPO fund and follow-on performing credit fund application with SEBI. The pre-IPO fund will invest in companies with a time horizon of 18 months to IPO up to the anchor book. The first performing credit fund is on track to deliver target returns in line with the stated investment objective, with several investments already exited.
Mohanty emphasized, “Alternatives will remain a key priority for the group. We are investing heavily in building specialist teams, robust risk management processes, due diligence, and investor experience across platforms. With rising investor participation and demand for flexible capital, our expanded AIF platform will play an important role in supporting India's next decade of growth.”
JM Financial's expansion into the AIF space underscores the growing importance of alternative investments in India's financial landscape. The company's strategic moves are expected to enhance its market position and contribute significantly to the growth of the real estate and other critical sectors.
