Mt K Kapital Targets Rs 4,000 Crore Raise for Indian Real Estate Credit Fund

Real estate investment firm Mt K Kapital is aiming to raise over Rs 4,000 crore or approximately $450 million through its second fund from both domestic and offshore investors. This ambitious capital raise is one of the largest by an Indian investment management firm and underscores the growing confidence in the Indian real estate market.

As a partnership-driven platform backed by the realty developer Rustomjee Group, Mt K Kapital’s strategy will focus on building alliances with developers across key Indian markets, including Mumbai, NCR, Pune, and Bangalore. The primary goal is to invest at the acquisition stage and even at the pre-approvals stage, ensuring early-stage involvement in high-potential projects.

“The Mt K platform aligns interests across stakeholders in the development cycle, and the first fund’s performance has reinforced this approach. With the second fund, we plan to expand into Pune, Bangalore, and NCR and broaden developer partnerships. Investor support in the first fund has guided our approach, and we aim to structure projects that allow effective execution and timely delivery to customers,” said Binitha Dalal, Founder & Managing Partner of Mt K Kapital.

The credit fund has a tenure of seven years and will target residential, mixed-use, and redevelopment projects that can be completed within five years. The average investment size is expected to be around Rs 300 crore per project, with the first deployment likely by the first quarter of 2026. The fund’s General Partners are expected to commit around $100 million to the total corpus.

The first fund, a Rs 790 crore MMR-focused vehicle, has established the platform’s approach to underwriting, project monitoring, and investor engagement. “We expect the strategy to scale with the second fund and strengthen the platform’s position as an institutional capital provider to the real estate sector. The model has already demonstrated effective outcomes within the Rustomjee ecosystem,” said Boman Irani, CMD of Rustomjee Group.

The platform also holds development execution capability through developer Rustomjee, enabling it to participate across the value chain from early-stage structuring to execution and delivery. Dalal added that the first fund has marked its presence in the real estate investment space, and the company is aiming to scale this strategy further through the second fund by partnering with established developers across markets that continue to demonstrate strong end-user housing demand and improving affordability.

The proposed fund raise comes at a time when the real estate sector is witnessing sustained momentum, driven by demand resilience in the residential segment, strong sales velocity, and consolidation towards established developers. Access to structured capital has emerged as a critical driver for project acquisition and execution, particularly in land-led and redevelopment opportunities across major cities.

With a focus on underwriting projects that offer visibility of timelines and cash flows, the new fund intends to capture opportunities at the early-stage acquisition level backed by on-ground execution capabilities. Industry experts expect a continued pipeline of redevelopment and land aggregation transactions in the Mumbai Metropolitan Region and other key urban centers, presenting a strong deployment opportunity for such platforms.