JM Financial AMC launches `1,000 cr real estate fund

New Delhi: JM Financial AMC is expanding its Alternative Investment Fund (AIF) platform with the launch of a Rs 1,000 crore early-stage real estate fund aimed at addressing the sector’s financing gap.

The fund will leverage the group’s decade-long experience in managing real estate credit and seeks to bridge capital shortfalls that traditional lenders are often unable to meet due to regulatory constraints, said Amitabh Mohanty, MD and CEO of JM Financial Asset Management Ltd.

The early-stage real estate fund plans a first close of around Rs 500 crore. Proceeds will be deployed as debt capital to established developers in metro cities, primarily to meet land acquisition and approval-related costs. The fund has attracted strong interest from institutional investors as well as HNIs and family offices. Mohanty said the AIF platform will offer specialised pools of capital across credit, real estate and pre-IPO opportunities.

JM Financial has also filed applications with Sebi for its maiden pre-IPO fund and a follow-on performing credit fund. The pre-IPO fund will invest in companies with an 18-month-to-IPO horizon up to the anchor book.

The asset manager’s first performing credit fund is on track to deliver target returns, with several investments already exited.