Alt Capital launches AYF III, ties up with FundsIndia Private Wealth to raise Rs
Benchmarks Nifty22,622.70-99.25FEATURED FUNDS★★★★★UTI Aggressive Hybrid Fund Regular Plan-Growth5Y Return8.71 % Invest NowFEATURED FUNDS★★★★★Motilal Oswal Midcap Fund Direct-Growth5Y Return19.29 % Invest NowEnter search…
Alt Capital has launched AltCap Yield Fund III to tap opportunities in commercial real estate, targeting Rs 1,000 crore with a green shoe option. The fund will focus on pre-leased Grade A assets, aiming for stable income and 16–18% IRR, backed by strong demand and the firm’s proven investment track record.
Alt Capital has announced the launch of AltCap Yield Fund III (AYF III), the third scheme under its Category II Alternative Investment Fund (AIF) platform, as it looks to tap into the growing opportunity in India’s commercial real estate space.The firm has partnered with FundsIndia Private Wealth to raise Rs 1,000 crore, along with a green shoe option of Rs 200 crore.
The launch builds on the back of a strong track record from its earlier funds. The maiden scheme, AYF I, has been fully deployed with investments of around Rs 120 crore across four rent-yielding office assets in Bengaluru and Mumbai, delivering a weighted average yield of 8.6%.
Meanwhile, AYF II has raised Rs 135.9 crore so far, with Rs 46.41 crore deployed across warehouse and office assets in Mumbai, generating a yield of 8.2%.
With AYF III, Alt Capital aims to invest in stable, income-generating real estate by focusing on pre-leased Grade A and A+ office and warehousing assets—segments that are witnessing strong demand in India.
Live Events
The strategy deliberately avoids greenfield development risks, instead prioritising assets with predictable cash flows. The fund is targeting an internal rate of return (IRR) of 16–18% over a 4–5 year investment horizon, supported by prudent leverage.
The investment team is currently evaluating a robust pipeline of opportunities worth nearly Rs 2,520 crore across key markets such as Bengaluru, NCR, and Pune.
India’s commercial real estate market continues to remain buoyant, driven by structural factors such as rising global outsourcing and the expansion of Global Capability Centres (GCCs).
Multinational corporations are scaling up operations in India to leverage cost advantages, while domestic technology firms are also expanding amid return-to-office trends. In addition, an easing interest rate cycle is expected to support cap rate compression, potentially enhancing exit valuations for investors.
Alt Capital’s leadership team brings significant institutional expertise, having previously played a key role in building office portfolios at Blackstone Group. Collectively, the team has experience across more than $3 billion in real estate investments.
Commenting on the launch, Kunal Moktan, CEO and Co-founder of Alt Capital, said the new fund is aimed at investors seeking exposure to income-generating commercial real estate, with diversification across multiple assets and the potential for enhanced returns through portfolio-level exits.
Echoing similar views, Srinivas Mendu, CEO of FundsIndia Private Wealth, said the partnership reflects a strong conviction in Alt Capital’s institutional pedigree and disciplined investment approach. He highlighted that the focus on premium, pre-leased assets without developer risk offers stability, predictable income, and attractive risk-adjusted returns for investors.
AYF III will primarily target institutional investors, high-net-worth individuals (HNIs), family offices, as well as select domestic and NRI investors, offering them an opportunity to participate in India’s evolving commercial real estate growth story.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times.)
Add as a Reliable and Trusted News Source Add Now!
(You can now subscribe to our ETMarkets WhatsApp channel)
Read More News onalt capitalreal estate fundaif fundcommercial realtyyield fundoffice assetsinvestment fundindia real estatecommercial real estateFundsIndia Private Wealth
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
...moreless(You can now subscribe to our ETMarkets WhatsApp channel)
Read More News onalt capitalreal estate fundaif fundcommercial realtyyield fundoffice assetsinvestment fundindia real estatecommercial real estateFundsIndia Private Wealth
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
...morelessPrime ExclusivesInvestment IdeasStock Report PlusePaperWealth EditionOnion inflation at 108%? Yes, but not really. What is different this time?
Curbing rupee bets: What the RBI’s new rules mean for the hedge-now-or-wait question
Brinjal, buffalo, bacteria: Inside India’s pay-for-nature system
Homebuyers wait as NCLT panel picks holes in unfinished Jaypee projects
The NBFC saga - Part 3: How one default in 2018 changed the way RBI reads risk
Four rules made HDFC Bank a compounder. All four have stopped. Can the new CEO rewrite them?
- 1
- 2
- 3
& personalised newslettersLogin NowUnlimited AccessStarting @ Rs120/monthGet access to exclusive stories, expert opinions &
in-depth stock reportsSubscribe NowET
Unlock Access to All Exclusives with ETPrime FREE TRIAL
15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers
Trial offer expiring in00 : 05 : 00
I'd rather pay ₹2599 nowUh-oh! This is an exclusive story available for selected readers only.
Worry not. You’re just a step away.
Prime Account Detected!
It seems like you're already an ETPrime member with
Login using your ET Prime credentials to enjoy all member benefits
Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.
Unlock ETPrime's Exclusive Stories Today!
Big Price Drop! Flat 40% Off
Student Only OfferAlready a Member? Sign In nowAlready a Member? Sign In nowAlready a Member? Sign In nowOffer Exclusively For You
Save up to Rs. 700/-
ON ET PRIME MEMBERSHIP
Avail OfferOffer Exclusively For You
Get 1 Year Free
With 1 and 2-Year ET prime membership
Avail OfferOffer Exclusively For You
Get 1 Year Free
With 1 and 2-Year ET prime membership
Avail OfferOffer Exclusively For You
Get Flat 40% Off
Then ₹ 1749 for 1 year
Avail OfferOffer Exclusively For You
ET Prime at ₹ 49 for 1 month
Then ₹ 1749 for 1 year
Avail OfferSpecial Offer
Get flat 40% off on ETPrime
Avail OfferAvail OfferClaim NowAlready a Member? Sign In nowNeed Assistance?
Connect with an ETPrime expert for personalized support and guidance
+91 9484700004'; }); } if(listing) { var h3 = "You tried reading " + listArr.length + " locked stories in the past " + threshold + " days.", h4 = "Become an ET Prime member and don't miss out on these exclusive stories."; var html = '' + h3 + '
' + h4 + '
- ' + listing + '
What’s Included with
ETPrime Membership
1Exclusive Insights That Matter
Uncover the truth with our investigative stories
Make strategic moves using the real-world case studies
Read industry-specific stories to identify emerging trends
Spot opportunities with in-depth insights that matter
Trump temper on H-1B visas is forcing Indians to do these things to stay put in US
What Adani’s US indictment means for India Inc’s overseas fundraising
Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.
Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?
Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?
The problem with lab grown diamonds
Why a falling rupee is a better option for the economy
A list of top 20 momentum stocks that have delivered massive returns in one year
2Invest Wisely With Smart Market Tools & Investment Ideas
Alpha Trade
Get daily trade ideas from SEBI-registered research analysts.
Investment Ideas
Grow your wealth with stock ideas & sectoral trends.
Stock Reports Plus
All-in-one stock research with Stock Score, peer comparison & key signals.
BigBull Portfolio
Get to know where the market bulls are investing to identify the right stocks.
Stock Analyzer
Check the score based on the company's fundamentals, solvency, growth, risk & ownership to decide the right stocks.
Market Mood
Analyze the market sentiments & identify the trend reversal for strategic decisions.
Stock Talk Live at 9 AM Daily
Ask your stock queries & get assured replies by ET appointed, SEBI registered experts.
3Stay informed anytime, anywhere with ET ePaper
ePaper - Print View
Read the PDF version of ET newspaper. Download & access it offline anytime.
ePaper - Digital View
Read your daily newspaper in Digital View & get it delivered to your inbox everyday.
Wealth Edition
Manage your money efficiently with this weekly money management guide.
TOI ePaper
Read the PDF version of TOI newspaper. Download & access it offline anytime.
Deep Explainers
Explore the In-depth explanation of complex topics for everyday life decisions.
Health+ Stories
Get fitter with daily health insights committed to your well-being.
Personal Finance+ Stories
Manage your wealth better with in-depth insights & updates on finance.
5Enjoy Complimentary Subscriptions From Top Brands
Stream new documentaries from all across the world every day.
Stories you might be interested in
Figures reflect the source report and its stated period. This article is for information and is not investment advice.
