Private capital flows into real estate through AIF route

Published On : 2024-12-03T00:31:43+0530 [ IST ] | Author : Mayur_Tembhare
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Mumbai: Private capital continues to pour into real estate through the alternate investment funds (AIFs) that are increasingly relied on by developers to plug funding gaps. In the first nine months of the calendar alone the real estate sector saw Rs 28,560 Cr raised through private equity investments.

A major trend within AIFs is the growing reliance on equity financing to bridge gaps in the real estate sector. With many real estate projects requiring significant working capital throughout their lifecycle, AIFs have provided a vital source of funding. These funds offer a customized capital stack that addresses the unique needs of real estate developers

By the end of H1 FY25 total investments in the real estate sector via AIFs have risen from 68,540 Cr by FY 2024-end to 75,468 Cr. This is a significant10% growth in just half the

A deep dive into the data reveals that the surge in AIF activity is largely driven by Category II AIFs which include a mix of Real Estate Funds Private Equity Debt Funds and Fund of Funds (FoF) Puri said.

Traditionally domestic investors have been the primary source of AIF funding however foreign portfolio investors (FPIs) are also stepping up especially in the case of Category II AIFs. In this category FPIs now have an almost equal participation alongside domestic investors. Real estate comprised the highest share of AIF investments at 17% (Rs 75,468

A total of Rs 4,49,384 crore AIF (Alternate Investment Funds) investments were made across various sectors from H1 FY2025. B/w FY2013 to FY2024 the AIF sector maintained a CAGR of

AIFs’ overall commitment across Indian sectors rose from Rs 2,82,148 Cr in FY 2019 to Rs 12,43,083 Cr in H1 FY2025. Surge in AIF activity largely driven by Category II AIFs with a mix of Real Estate Funds, Private Equity, Debt Funds

AIF in India have seen substantial decadal increase in the number of funds available for investment. Between FY2013 and FY2024 the commitment raised in AIF sector has maintained a 83.4% compound annual growth rate (CAGR), signalling its growing importance in the broader

Source : Reporters From Sunrise Chronicles

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