Essel Financial launches 2nd RE fund; to raise Rs 250 crore

Private equity arm of Essel Finance, Essel Financial Advisors and Managers (EFAM) today launched its second real estate fund and plans to raise up to Rs 250 crore.
The Rs 250 crore fund will invest in residential projects in Delhi0-NCR, Mumbai, Chennai, Bengaluru and Pune and will target 6-8 transactions, the company said in a statement.
"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," its CEO - Private Equity Abhinav Bhushan said.
He added that the fund will continue to focus on mid and affordable residential segment as these segments have maximum demand and have ability to provide stable returns even during stagnant markets.

The fund with a tenor of four years shall target a gross internal rate of return of 21.5 per cent from its investments.
The company said the fund has been set up as Sebi Registered AIF Category II fund and has already received requisite approval from the authorities.