The Bajaj Finserv subsidiary secured commitments from family offices and institutions for a vehicle targeting $238 million.
Bajaj Alts, the alternative investment arm of Bajaj Finserv, raised Rs 950 crore in the initial close of its first real estate fund, the company said October 12. The vehicle will invest in joint ventures with developers to build Grade A commercial office assets.
The fund, Bajaj Alts Real Estate–Growth Fund I, is targeting a total corpus of Rs 2,000 crore, including a green-shoe option. It secured commitments from family offices, institutions and high-net-worth individuals.
The fund's strategy focuses on equity-led commercial real estate development, a segment that has seen limited participation from domestic investment strategies compared with debt financing for residential developers and the acquisition of completed assets, the company said.
"Our strategy is focused on partnering with established developers to co-develop high-quality commercial office assets in India's key markets," said Sanchit Bhatia, head of the real estate fund at Bajaj Alts. The strategy will allow investors to participate in value creation from projects catering to corporates and global capability centres, he said.
The fund has a pipeline of investment opportunities and plans to deploy capital across select cities over the coming months. The company did not disclose the cities, developer partners or individual projects being evaluated.
Lakshmi Iyer, group president for investments and managing director and chief executive officer of Bajaj Alts, said the fund's first close would lay the foundation of a broader alternatives investment platform.
Bajaj Alts, a wholly owned subsidiary of Bajaj Finserv, was incorporated in 2025. Its investment offerings span real estate, private equity and listed equities, with plans to use strategies such as long-short and quantitative investing. The commercial office sector is seeing heightened investor appetite for institutional-grade assets in business districts, driven by demand from multinational companies for global capability centres or their expansions.
The Deployment Angle
Family Office Real Estate Daily Desk · our analysis, not the source's
Family offices evaluating this strategy should treat it as a co-GP opportunity with development risk. The fund is entering projects at the equity stage alongside established developers, not acquiring stabilized assets. That means illiquidity extends through construction and lease-up, typically four to six years in Indian office development. The Rs 950 crore first close against a Rs 2,000 crore target implies the fund is roughly half-committed, leaving room for follow-on allocations.
The stated focus on global capability centres as anchor tenants offers underwriting clarity. GCCs have been the primary driver of Grade A office absorption in India's top six markets, with lease terms typically seven to nine years. A family office considering exposure here should price in construction delays, municipal approval risk, and the concentration of demand in Bangalore, Hyderabad and the National Capital Region. The fund has not named its developer partners or target cities, which limits pre-commitment due diligence.
An alternative route is direct co-development with a named sponsor on a deal-by-deal basis, which preserves control over site selection and avoids blind-pool risk. Family offices with existing relationships in Indian commercial development may achieve better economics through a programmatic joint venture than through a commingled fund. The stated return profile is not disclosed, but equity-led office development in India has historically targeted gross IRRs of 18 to 22 percent, implying net returns in the mid-teens after fees and carried interest on a commingled vehicle.
The fund's deployment timeline—"over the coming months"—suggests capital will be called relatively quickly. Family offices committing to the vehicle should ensure liquidity to meet capital calls within a six-to-twelve-month window. The absence of disclosed projects at first close means investors are underwriting Bajaj Alts' sourcing and execution capability rather than a defined portfolio. That places a premium on the track record of Sanchit Bhatia and the broader Bajaj Alts real estate team, which the source does not detail.
