New Delhi, Aug. 21 -- Arnya RealEstates Fund Advisors, an independent real-estate focussed investment firm, is in the last leg to launch a debt fund to back domestic residential realty projects, two people close to the development told VCCircle. Arnya currently manages its maiden debt vehicle Arnya Real Estate Fund - Debt and its equity fund as a platform with Mumbai-based developer Supreme Universal. Arnya recently got the go-ahead from the Securities and Exchange Board of India (SEBI) for a fresh debt vehicle and will launch the scheme soon in the market, one of the persons mentioned above said. "The fund size is likely to be in the range of Rs 1,500-2,500 crore [around $157-261.3 million], making the corpus significantly higher than its Rs 1,000 crore debut fund," he said. The firm will tap its existing network of limited partners (LPs), scooping up capital from domestic family offices, institutions and high and ultra-high networth individuals (HNIs, UHNIs) in addition to looping in fresh investors. "The investments will go towards residential projects across top metros of the country in the form of structured debt, a strategy that the firm initiated with its maiden fund," the second person said. Both sources said that marketing for the fund will start soon, leading to capital raise in the subsequent quarters. The fund will be the second in the firm's debt strategy, which focusses on providing growth capital to tier 1 developers across India's top eight cities. In response to VCCircle's queries regarding this development, an Arnya spokesperson said that the information received was incorrect. Earlier funds Through its debut vehicle Arnya Real Estate Fund - Debt, the firm has committed Rs 1,000 crore ($104.5 million) across 11 transactions spanning five geographies since its first close in September 2024. Total commitments are expected to reach Rs 1,200 crore, including direct investments. Its portfolio includes projects of Casagrand, MAIA Estates, Gami Group and Vaishnavi Group, among others. In its last press statement, issued this June, the firm mentioned a plan to launch a fresh debt fund, adding that it sees strong momentum across mid-income, premium and redevelopment-led housing segments in the country. Separately, Arnya also has a platform partnership with Supreme Universal, which focusses on redevelopment opportunities in Mumbai. It recently hit the first close of the residential equity fund at Rs 1,030 crore and is expected to hit its final close soon. Over the long term, the firm aims to build a full-stack real estate asset management platform offering a diversified suite of strategies spanning credit, equity and rental assets. Arnya was founded by Sharad Mittal, who previously built and scaled up the real-estate investment business at MO Alternates, overseeing more than Rs 10,000 crore in investments across over 175 projects. He has also held senior roles at ICICI Prudential AMC, ICICI Bank, ASK Property Investment Advisors and First Rand Bank. Within two years of inception, Arnya had launched two funds, grown to a 25-member team, and established offices across five cities. Arnya joins a clutch of asset management firms that are in the process of raising funds for the country's residential real estate market. Certus, an independent firm set up by former KKR executive Ashish Khandelia, recently raised Rs 150 crore (around $15.7 million) marking its first close. The fund has a target corpus of Rs 500 crore (around $52.4 million) and a green-shoe option of another Rs 500 crore. ICICI Pru, the alternatives arm of ICICI Prudential Asset Management Company, as reported by VCCircle, is currently raising a residential realty focussed fund with a base size of Rs 1,000 crore and a green-shoe option of Rs 1,000 crore.
Published by HT Digital Content Services with permission from VC Circle.