Real estate attracted the highest share of alternative investment funds (AIFs) till the first half of FY25, marking the largest share since the inception of AIFs in 2013.
According to SEBI data compiled by ANAROCK, real estate accounted for 17 percent of total AIF investments, amounting to nearly ₹75,468 crore, a 10 per cent increase from ₹68,540 crore recorded at the end of FY24.
Other sectors that received AIF investments included IT/ITeS, financial services, NBFCs, banks, pharma, FMCG, retail, renewable energy, and others.
Explaining the trend, Anuj Puri, Chairman - ANAROCK Group said, “The surge in AIF activity is largely driven by Category II AIFs, which include a mix of real estate funds, private equity, debt funds, and fund of funds (FoF).”
Over the last five years, Category II AIFs have accounted for nearly 80 percent of total AIF commitments, highlighting the dominance of these flexible and tailored investment vehicles, he added.
Between FY13 and FY24, the commitment raised in the AIF sector had a compound annual growth rate (CAGR) of 83.4 percent.
Additionally, foreign portfolio investors (FPIs) are stepping up their contributions. Traditionally, domestic investors have been the primary source of AIF funding. However, FPIs are now playing a significant role, particularly in Category II AIFs.
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According to ANAROCK Capital, the real estate sector raised ₹28,560 crore through private equity investments during the first nine months of CY24, apart from AIFs.
Real estate accounted for 17 percent of total sectoral investments this year. During the same period, ₹12,801 crore was raised via Qualified Institutional Placements (QIPs).