Real estate credit fund Nisus Finance, in partnership with its sponsor and strategic partner BCD Group, has raised Rs 4.5 billion for its debut fund. The firm aims to complete the final fundraising for its Real Estate Special Opportunities Fund-1 (RESO-1) by the end of the current financial year.
"We are in the process of raising an additional Rs 1.5 billion and have received a strong response from both existing and new investors. There is a growing need for last-mile construction finance, with many projects still stuck in the completion phase," said Amit Goenka, Managing Director and CEO, Nisus Finance.
Nisus Finance has already invested Rs 4.5 billion across four deals through RESO-1, managed by Nisus BCD Advisors LLP, with a total corpus of Rs 7 billion. Recent investments include Rs 600 million via listed non-convertible debentures in the late-stage residential development Project High Cliff in Bengaluru, and approximately Rs 1.05 billion in Shapoorji Pallonji Real Estate's subsidiary, Suvita Real Estate, for a 12.16-acre land parcel in Pune's Manjari-Budruk locality.
The fund focuses on investing in mid-income, affordable housing, and plotted development projects, aiming to unlock value through capital in a special situation fund. "The fund targets an internal rate of return of 18-22% over a five-year period, with the option to extend for an additional two years. It focuses on generating substantial alpha while ensuring a well-mitigated risk profile and sufficient asset backing," Goenka added. (ET)
