JM AMC Launches ₹1,000-Cr Early-Stage Real Estate Fund to Address Financing Gap
JM Financial Asset Management Company (JM AMC) is set to expand its Alternative Investment Fund (AIF) platform with the launch of a ₹1,000 crore early-stage real estate fund. This move is aimed at addressing the sector’s financing gap, a significant issue in the Indian real estate market.
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, said Amitabh Mohanty, MD and CEO of JM Financial Asset Management Ltd.
The AIF platform will offer specialized pools of capital across credit, real estate, and pre-IPO opportunities. Mohanty emphasized that the fund will capitalize on the group’s extensive expertise and track record over more than a decade in managing real estate credit. The fund aims to bridge the capital gap that traditional lenders are unable to address due to regulatory constraints.
The fund aims to raise ₹1,000 crore, with a likely first close of ₹500 crore. The proceeds of the fund will be utilized to provide debt capital to established developers in metro cities, meeting their requirements for land acquisition and approval costs. The fund has already seen strong investor interest from both institutional and high-net-worth individual (HNI)/family office segments.
In addition to the real estate fund, JM Financial has 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 its stated investment objectives, with several investments already exited.
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, Mohanty concluded.
JM AMC’s expansion into AIFs reflects the growing trend of alternative investments in India, driven by the need for innovative financing solutions and the increasing demand for flexible capital. The company’s strategic move is expected to contribute significantly to the growth and development of the real estate sector in India.
