Investcorp raises US $130m for last-mile funding in India

Leading global alternative asset management firm Investcorp said it has raised $130 million in anchor commitments primarily for providing last-mile funding in India. BAe Systems Pension Funds Investment Management Limited is the cornerstone investor for this initiative, which will focus on projects in the affordable and mid-market housing segment in the top seven cities in India.

Commenting, Vikram Aggarwal, Head of Private Markets, BAe Systems Pensions said, “We believe that the Indian affordable housing segment represents a sizeable and attractive market opportunity catalysed by urbanisation and structural reforms.”

Yusef Al Yusef, Managing Director, Investcorp, said the current short-term liquidity constraints in the market provides the company with an excellent platform to grow its real estate business.

Ritesh Vohra, Partner and Head - Real Estate, Investcorp India, added, “Affordable housing has emerged as a dominant segment, augmented by government efforts and the introduction of favourable policy reforms.”

Investcorp manages over the US $28 billion globally and at its core is a mid-market specialist. In India, the real estate business has deployed over US $200 million through two funds across 27 residential projects located in the top tier cities.

Investcorp is also active in the mid-market private equity space in India, having made five investments, in Zolo Stays, Citykart, Intergrow Brands, Bewakoof, and Nephroplus in 2019.