Alt Capital Launches AYF III; Partners with FundsIndia Private Wealth to Raise Rs. 1,000 Crore

Alt Capital Launches AYF III with FundsIndia:

Alt Capital, a SEBI-registered Category II AIF manager, today announced the launch of AltCap Yield Fund III (AYF III), the third scheme under its existing Alternative Investment Fund platform. The firm has partnered with FundsIndia Private Wealth to raise Rs. 1,000 crore, with an additional Rs. 200 crore green shoe option.

The launch builds on the strong track record of AYF I and AYF II. The maiden scheme has been fully deployed, with approximately Rs. 120 crore invested across four rent-yielding office assets in Bengaluru and Mumbai, delivering a weighted average yield of 8.6%. The second scheme has raised Rs. 135.9 crore, with Rs. 46.41 crore already deployed across two warehouse and office assets in Mumbai, generating a weighted average yield of 8.2%.

AYF III will focus on investing in stable, high-quality, pre-leased Grade A/A+ office and warehousing assets, two of India’s fastest-growing real estate segments while avoiding risks associated with greenfield development. The fund is targeting a 16–18% internal rate of return (IRR) over a 4–5 year hold period, with prudent leverage to enhance overall portfolio returns.

The investment team is currently evaluating a strong pipeline of approximately Rs. 2,520 crore across Bengaluru, NCR, and Pune.

India’s office market is poised for sustained growth, driven by increasing global outsourcing and expansion of Global Capability Centres (GCCs). Multinationals continue to scale operations in India due to significant cost advantages, while domestic technology firms are accelerating office expansion amid return-to-office trends. These dynamics, combined with an easing interest rate cycle, are expected to support cap rate compression and enhance exit outcomes.

Alt Capital’s leadership team brings deep institutional expertise, having previously played a key role in building office portfolios at global real estate major Blackstone Group. The team collectively brings experience across over $3 billion in real estate investments.

Commenting on the launch, Kunal Moktan, CEO and Co-founder, Alt Capital, said, “Following up on the success of AYF I and AYF II, we are excited to launch the third scheme under AltCap Yield Fund targeting income-generating office and warehousing assets in India. 

We believe AYF III is the right vehicle for investors looking to invest in Indian commercial real estate as it ensures diversification across 4-5 assets, advantages of leverage and the potential of sharper exit yields through a portfolio exit.”

Srinivas Mendu, CEO, FundsIndia Private Wealth, further stated, “We are delighted to partner with Alt Capital on AYF III as we raise Rs. 1,000 crores from our investors. Our conviction is strengthened by AltCap’s institutional pedigree and its alignment with high-quality platforms backed by WestBridge Capital. The team’s experience, including significant deployment during their time at Blackstone, combined with a disciplined investment approach, gives us strong confidence in the strategy.

Importantly, the focus on premium, pre-leased Grade A+ assets with no developer risk provides stability, predictable cash flows, and attractive risk-adjusted returns. We believe this partnership enables us to deliver a compelling solution to our clients, one that combines institutional quality, capital preservation, and steady income, ultimately providing greater confidence and peace of mind in their investment journey.”

AYF III is targeted at institutional investors, HNIs, family offices, and select domestic and NRI investors

About Alt Capital & Alt

Alt Capital is a SEBI-registered Portfolio Manager, Investment Advisor, and Category II Alternative Investment Fund (AIF) manager, focused on delivering returns through high-yield, rent-generating real estate assets across India’s key offshoring hubs. Founded by Kunal Moktan and Hashim Khan, the firm brings deep institutional expertise. Kunal, an IIM Ahmedabad alumnus, has over 15 years of real estate investment experience, including 7+ years with Blackstone Group, while Hashim combines 15+ years of experience in technology and operations with prior leadership roles in a large Middle Eastern real estate conglomerate. Since 2016, the founders have collectively invested over Rs. 2,378 crore in real estate and returned approximately Rs. 675 crore to investors.

Alt Capital is a wholly owned subsidiary of Alt, a Series B-funded, tech-enabled platform backed by investors including WestBridge Capital, Lightspeed, Beenext, and Pravega Ventures. Alt has been at the forefront of democratizing access to alternative assets, having pioneered fractional real estate investing in India through Property Share, which became the first platform to receive a Small and Medium REIT license from SEBI. With a presence across Mumbai, Bengaluru, and London, Alt offers access to a diversified suite of alternative investments spanning private credit, real estate, and listed REITs across global markets, serving over 300,000 users and managing more than $250 million in assets.

About FundsIndia

Founded in 2008, FundsIndia is one of India’s pioneering digital-first wealth management platforms, focused on simplifying investing for individuals, partners, and families nationwide. Built on a foundation of research-led insights, robust technology, and customer trust, FundsIndia enables investors to make informed, goal-oriented financial decisions with clarity and confidence.

Backed by WestBridge Capital, a leading global investment firm, FundsIndia has further strengthened its capabilities through long-term strategic capital, governance expertise, and a strong focus on scalable, technology-driven growth.The company operates through three integrated business verticals, Digital (Retail), B2B (Partners), and Private Wealth, each led by dedicated leadership and working in close alignment to deliver scalable, long-term value. Together, these verticals serve a diverse investor base through a seamless blend of digital and advisor-led experiences.

FundsIndia offers a comprehensive suite of investment solutions spanning mutual funds, equities, insurance, and other wealth products, supported by intuitive digital journeys, strong research capabilities, and personalized guidance. Headquartered in India and backed by institutional investors, FundsIndia remains committed to its mission of making investing simpler, more transparent, and accessible, helping millions of Indians build long-term wealth through disciplined, technology-enabled investing.

Alt Capital Launches AYF III, marking a significant move in the investment space with FundsIndia Private Wealth supporting the fund raise. Alt Capital Launches AltCap Yield Fund III with strong backing from Blackstone Group experience and WestBridge Capital, highlighting growing investor confidence.

Disclaimer:
This article is based on a press release issued by NewsVoir. No changes have been made to the original content. Only SEO-related elements, including keywords, meta title, meta description, tags, and sub-headings, have been added solely for optimization purposes.