TFCI Expands into Hospitality AIF and Real Estate Fund, SEBI Filings Completed

Tourism Finance Corporation of India Ltd (TFCI) has announced plans to expand its footprint in the alternative investment fund (AIF) space by acting as a co-sponsor and anchor investor in two Category II AIFs. This strategic move marks a significant step in TFCI’s diversification into equity-linked and asset management businesses.

In a regulatory filing, TFCI stated that it will act as co-sponsor and anchor investor in the Holystone Hospitality Fund, an equity-oriented Category II AIF, with a proposed commitment of up to 5 per cent of the total fund corpus. An application for registration of the fund has already been filed with the Securities and Exchange Board of India (SEBI).

TFCI will also serve as an anchor investor in the Certus Real Estate Fund, another Category II AIF, with a commitment of up to 10 per cent of the total fund size. The registration application for the Certus Real Estate Fund has similarly been submitted to SEBI.

Anoop Bali, Managing Director of TFCI, commented, “Our participation as co-sponsor and anchor investor reflects TFCI’s intent to leverage its sectoral expertise while partnering with experienced fund managers. The AIF route allows us to support the hospitality and real estate sectors in a capital-efficient manner, while creating additional avenues for value creation.”

Industry observers view this development as part of TFCI’s broader transition from a niche tourism and hospitality lender to a diversified non-banking financial company (NBFC) with a wider financing and investment mandate. Through the AIF structure, TFCI will gain exposure to equity and quasi-equity opportunities without materially increasing balance sheet risk.

As a specialised NBFC-ML, TFCI currently provides financial assistance across sectors including tourism and hospitality infrastructure, manufacturing, renewable energy, social and urban infrastructure, real estate, NBFC and HFC funding, structured credit, and lending against listed securities. The company is also scaling its digital retail lending platform, expanding its reach within the financial ecosystem.

By entering the AIF domain, TFCI is positioning itself to play a stronger role in sector-led growth capital formation, particularly in hospitality and real estate, two sectors with high post-pandemic recovery potential.