Launch of 2nd real estate fund by Essel Finance

Essel Financial Advisors and Managers (EFAM), the private equity arm of Essel Finance, launched its second real estate fund with a target of raising upto Rs.250 crore. The real estate fund will be invested in various residential projects across cities such as Delhi NCR, Mumbai, Chennai, Bengaluru and Pune. In a statement, the company has added that it will target 6-8 transactions.

CEO – Private Equity Abhinav Bhushan said, “Current market is an opportune time for investment in a debt fund like ours as we have locked in deals at attractive rates and the interest rates are witnessing a downward pressure.”

The fund will have a four year tenor and have set a target of 21.5% internal rate of return from its investments. Considering the firm anticipates maximum demand from the mid and affordable residential segment, the fund will focus on these segments due to its capacity to offer steady returns during downward phases.

The real estate fund has received the required approval from the concerned authorities and has been set up as SEBI Registered AIF category II fund.