JM AMC Launches Rs 1000-Cr Real Estate Fund to Bridge Financing Gaps

New Delhi, Dec 21 (PTI) JM Financial Asset Management Company (AMC) is expanding its Alternative Investment Fund (AIF) platform with the launch of a Rs 1,000 crore early-stage real estate fund. This initiative aims to address the sector's financing gap and support the growth of established developers in metro cities.

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, JM Financial Asset Management Ltd MD and CEO Amitabh Mohanty told PTI.

The AIF platform will offer specialized pools of capital across credit, real estate, and pre-IPO opportunities, he said. JM Financial has launched its early-stage real estate (RE) fund, which capitalizes on the group's expertise and track record over more than a decade 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 Rs 1,000 crore, with a likely first close of Rs 500 crore. The proceeds of the fund will be utilized for providing debt capital to established developers in metro cities to meet their requirements towards land acquisition and approval costs.

The fund has seen strong investor interest from both institutional and HNI/family office segments, he added. The asset manager 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.

Its first performing credit fund is on track to deliver target returns in line with the stated investment objective, 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, he said.