Alpha Alternatives raises Rs 3,800 cr for first close of maiden infra fund

The category II AIF will invest in road assets across India

Alpha Alternatives Fund Advisors, the asset management arm of Alpha Alternatives Group, on Monday announced that it has raised $450 million (Rs 3,800 crore) in the first close of its Alpha Alternatives Build India Infrastructure Fund.

 

The category II alternative investment fund (AIF) will invest in road assets across India, including standard, distressed, under-construction, and operating projects.

 

The fund plans to raise a total of $750 million and has a tenure of 5 years, with the option to extend it to 7 years.

 

The company has partnered with Dilip Buildcon for the fund.

 

Alpha Alternatives plans to launch an Infrastructure Investment Trust (InvIT) next year to provide an exit option to investors of the Build India Infrastructure Fund.

 

“(The fund) provides an option to invest at a stage prior to the assets being purchased by an InvIT. The depth of our transaction sourcing capabilities, the one-of-its-kind partnership between an asset manager (Alpha Alternatives) and an operating partner (Dilip Buildcon Limited), and a differentiated investing approach together aim to capitalise on a broad spectrum of investment opportunities available in the road sector,” said Jignesh Shah, partner and head of infrastructure.

 

“We are reimagining the way investors approach real assets investing in India by challenging traditional expectations of limited returns associated with high-quality assets. This first fund of ours will focus on high-quality road assets, which are the backbone of our economic growth. By creating a unique framework through a strategic partnership, we aim to deliver better risk-adjusted returns, offering a compelling new investment opportunity,” said Naresh Kothari, founder and managing partner.