JM Financial Asset Management Company is expanding its presence in alternative investments with the launch of a ₹1,000 crore early-stage real estate fund, as it seeks to address funding constraints faced by property developers.
The new fund forms part of the group’s broader push to build a diversified Alternative Investment Fund (AIF) platform, offering specialised pools of capital across real estate, credit and pre-IPO opportunities. The initiative comes at a time when traditional sources of funding for real estate projects have become more restricted due to tighter regulations on banks and non-banking financial companies.
Amitabh Mohanty, managing director and chief executive of JM Financial Asset Management, said the objective was to create a comprehensive alternatives ecosystem focused on real asset-backed and non-traditional investment strategies. He said the firm was positioning itself to support India’s next phase of enterprise growth by offering flexible capital where conventional lenders are unable to participate.
The early-stage real estate fund is expected to raise ₹1,000 crore, with a first close of around ₹500 crore. According to the company, the capital will be deployed as debt financing to established developers in major metropolitan cities, primarily to support land acquisition and regulatory approval costs.
JM Financial said the fund has already attracted strong interest from institutional investors as well as high net worth individuals and family offices, reflecting growing appetite for alternative assets among investors seeking stable returns.
Beyond real estate, the asset manager has also filed with the Securities and Exchange Board of India (Sebi) to launch its first pre-IPO fund and a follow-on performing credit fund. The pre-IPO fund is designed to invest in companies in the final stages before listing, with a typical investment horizon of up to 18 months.
The company’s first performing credit fund is on track to deliver returns in line with its stated objectives, with several investments already exited.
JM Financial said alternative investments will remain a strategic priority, with continued investment in specialist teams, risk management and due diligence, as demand for flexible and private capital grows in India’s evolving financial markets.
