Reliance Capital Asset Management (RCAM) today said it has launched its first Alternate Investment Fund (AIF) and is targeting to raise over Rs 5,000 crore through the fund in the next three years.
The real estate-based fund is being launched through RCAMs subsidiary, Reliance AIF Management Company Ltd.
"RYMAIF (Reliance Yield Maximiser Alternative Investment Fund – Scheme I) seeks to invest in a portfolio of relatively high yielding securities, issued by companies participating predominantly in the residential real estate sector," RCAM said in a statement today.
"Reliance has emerged as one of the key player in the real estate investment space during last three years," Reliance Capital Ltd CEO Sundeep Sikka said.
"We plan to scale up our AIF presence and have plans to raise over Rs 5,000 crore under AIFs alone in next 3 years," Sikka said.
The fund aims to generate an attractive target IRR (Internal Rate of Return) in the range of 20-24 per cent on the underlying investments, the company said.
As of June 2014, RCAM has raised and deployed over Rs 1,200 crore under real estate based strategies and offered at an attractive IRR range of up to 27 per cent, the highest in the industry, it added.
AIFs are generally funds established or incorporated in India for the purpose of pooling in capital from Indian and foreign investors for investing as per a pre-decided policy.
The Securities and Exchange Board of India (Sebi) had notified the AIF regulations in May 2012, and since then had granted registrations to over 100 such funds.
Sebi's rules apply to all AIFs, including those operating as private equity funds, real estate funds and hedge funds, among others.