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    Alpha Alternatives raises Rs 3,800 cr through first close of maiden infrastructure fund

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    Alpha Alternatives raises Rs 3,800 cr through first close of maiden infrastructure fund
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    Synopsis

    Alpha Alternatives Fund Advisors has secured $450 million in the first close of its inaugural infrastructure fund, aiming to raise a total of $750 million. The fund will invest in Indian road assets, including a strategic partnership with Dilip Buildcon. They plan to establish an infrastructure investment trust (InvIT) for exiting assets by 2025.

    Alpha Alternatives
    Alpha Alternatives
    Alpha Alternatives Fund Advisors, an asset management arm of Alpha Alternatives Group, has raised $450 million or nearly Rs 3,800 crore as the first close of its maiden infrastructure fund Alpha Alternatives Build India Infrastructure Fund (AABIIF).

    Through this fund, the multi-asset class investment firm is looking to raise a total of $750 million or Rs 6,300 crore including a green shoe option of up to $250 million or Rs 2,110 crore.

    The category II, SEBI registered Alternative Investment Fund (AIF) fund has a tenor of five years extendable by up to two years, and will invest in road assets across India, including standard, distressed, under-construction, and operating projects.

    “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 & managing partner, Alpha Alternatives.

    The group has already picked up a 10% stake in construction and infrastructure development company Dilip Buildcon. In addition to this, it has also entered into an agreement to acquire 26% stake in a total of 18 special purpose vehicles of Dilip Buildcon and of these, it has already paid for 7 of these assets and around 15-17% of the newly raised funds will be utilised to pay for the balance assets.
    Growfast

      “Along with this, we will also create an exit mechanism for its investee assets through a publicly listed infrastructure investment trust (InvIT), which will be operational in 2025. We have a deal pipeline of around $300 million including Dilip Buildcon SPVs and other assets,” said Kaushal Biyani, Partner & Head, Illiquid Alternatives, Alpha Alternatives.

      Alpha Alternatives has achieved the commitment under the first close of the fund in the last two months from over 100 domestic investors including high networth individuals and families.

      “AABIIF provides an option to invest at a stage prior to the assets being purchased by an InvIT. The depth of our transaction sourcing capabilities, one of its kind partnerships between an asset manager (Alpha Alternatives) and an operating partner (Dilip Buildcon) and a differentiated investing approach together aims to capitalize on a broad spectrum of investment opportunities available in the road sector,” said Jignesh Shah, Partner and Head Infrastructure, Alpha Alternatives.

      AABIIF is Alpha Alternatives’ third fund in the illiquid alternatives space in the last 18 months, taking the total investor commitments to more than $1.25 billion in illiquid alternative strategies. Alpha Alternatives’ current assets under management stand at $2.5 billion.


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