IDFC

Overview

IDFC Alternatives is India's Leading Multi-Asset Class Investment Manager

IDFC Alternatives is IDFC's alternative asset management vertical and manages over USD 3.4 billion on behalf of leading institutional investors from across the world.

With three distinct asset classes - private equity, infrastructure equity and real estate - IDFC Alternatives offers investors a range of risk-return profiles.

Since IDFC Alternatives' first private equity fund was launched in 2002, IDFC Alternatives has expanded its alternative asset portfolio to include a total of three private equity funds, two infrastructure equity funds and one domestic real estate fund. We are the partner of choice for our investors globally and for our portfolio companies in India.

Established in 2010, Real Estate is the youngest asset class within the IDFC Alternatives platform. The asset class is managed by a dedicated on-the-ground experienced investment team.

The team employs a range of strategies to pursue investment, development and acquisition opportunities across various property types with a focus on opportunities where there is market dislocation and improving fundamentals. It has deployed capital across office acquisition and residential debt strategies.

Office Acquisition Strategy:

IDFC Alternatives is one of the earliest fund managers to pursue a strategy to acquire complete control of ready office assets in India.

In line with this strategy, we acquired Galaxy IT park admeasuring about 1.3 million sq. ft. in December 2011 and BlueRidge SEZ admeasuring about 1.5 million sq. ft. in March 2013 at a combined enterprise value of approximately INR 9 billion (~USD 150 million).

IDFC Alternatives created value by leasing, maintaining and actively managing these office assets.

In late 2014, we exited these office assets through sale to a reputed global fund house at a Gross IRR of 22%.

Residential Debt Strategy:

In 2014, IDFC Alternatives announced the final close of the IDFC Real Estate Yield Fund – an INR 7.5 billion (US$ 125 million) domestic fund focused on the residential segment in India.

The IDFC Real Estate Yield Fund focused on debt deals that generate high yields, while ensuring downside protection and adequate security cover.

The fund has built a high-quality portfolio by focusing on established developers and brown field residential projects, which will help generate superior returns for the Fund's investors by employing a balanced risk-return strategy.