New Delhi, June 9 -- Nisus Finance Services, which operates alternative investment funds backing real-estate credit and special situations opportunities, has launched its fourth India-focussed fund to invest in realty projects.
This comes around three years after it came out with its third such vehicle, or the Nisus Real Estate Special Opportunities Fund (RESO), in 2023.
The Mumbai-headquartered firm launched its most recent fund, or the Nisus Yield and Assets Multiplier (NiYAM) Fund, this May. The category-II AIF has a target of up to Rs 2,500 crore (around $262 million), which includes a greenshoe option of Rs 700 crore, according to a senior official at the company.
The fund will focus on early-mid stage structured investments in real estate and is targeting a gross internal rate of return (IRR) of 24-28%. Specifically, it will invest in plotted development, land trades with corporate developers, redevelopment and special situations.
"The mandate for the India fund is to help acquire land and finance the development of asset classes such as warehousing, data centers and low-rise horizontal developments in prominent micro markets," Amit Goenka, chairman and managing director of Nisus Finance told VCCircle. The cities in focus will include Delhi, Mumbai, Bengaluru, Chennai, Hyderabad, Surat, Guwahati, Raipur and Indore.
Additionally, Nisus has also set up an in-bound GIFT City vehicle, a Cat III AIF, which will act as a feeder fund to NiYAM Fund. The GIFT fund has a target corpus of $140 million (nearly Rs 1,500 crore), and includes a green-shoe option of $70 million, VCCircle learnt. Hence, the overall target corpus for NiYAM fund is up to Rs 4,000 crore.
"We will do 30-40 deals, and the average ticket size of each deal is Rs 125-150 crore. The target MOIC is 3-4x," Goenka said, adding that the fund will likely mark its first close in September.
Besides the NiYAM Fund, the firm runs the Real Estate Asset Performance Fund (REAP), Real Estate Credit Opportunities Fund (RECOF) and Real Estate Special Opportunities Fund (RESO). Additionally, Nisus launched the UAE-focussed Nisus High Yield Growth Fund in 2024.
The Nisus High Yield Growth Fund is registered with the Dubai International Financial Services Centre (DIFC) that operates a feeder vehicle in India's GIFT City. This fund has deployed $150 million so far, VCCircle learnt.
Broadly, Nisus intends to increase its exposure to the Gulf region to $1 billion in the next 12 months.
The Mumbai-based firm offers asset management, and bespoke advisory for urban infrastructure transactions and private capital market deals across India and global markets. It also offers diversified debt financing solutions for small and medium enterprises in the urban infrastructure space via a non-bank lender.
Its assets under management stood at Rs 2,631 crore as on March 31.
Published by HT Digital Content Services with permission from VC Circle.