BAJAJFINSV

Enters Alternative Investment Space with New AIFs 💼

, led by Sanjiv Bajaj, is diversifying its financial portfolio—which currently spans lending, insurance, and asset management—by entering the alternative investment fund (AIF) business. New Subsidiary and Leadership: The group has formed a new wholly-owned subsidiary, Bajaj Alternate Investment Management Ltd (Bajaj Alts), to spearhead this initiative. Lakshmi Iyer, a high-profile hire from the Kotak Group, has been appointed as the CEO of the new entity. Planned Funds and Fundraising Targets: Bajaj Alts plans to launch two main AIFs and is targeting a total fundraising of ₹3,500 crore to ₹4,000 crore. Early-Stage Equity Fund: Targeting ₹1,500 crore to ₹2,000 crore, this fund will focus on investing in Series A and B venture capital companies, with an average deal size of ₹25 crore to ₹100 crore. Commercial Real Estate Fund: Targeting a minimum of ₹2,000 crore, this fund will focus on commercial real estate in top-tier cities, aiming to invest approximately ₹500–600 crore per deal, driven by encouraging yield prospects in core and development assets. Investment Strategy and Investor Base: The Bajaj Finserv Group will serve as the main anchor investor to demonstrate "skin in the game" and attract third-party capital. The primary investor base will be high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs) from both India and overseas markets. Existing Portfolio and Future Plans: The Bajaj Finserv Group has already deployed ₹200 crore of its proprietary capital into half a dozen early-stage companies, such as KisanKonnect and Ecosoul Home. These existing deals will be warehoused into the new early-stage fund upon launch. The company also intends to launch a Category-3 AIF with a quantitative overlay, combining a long-only offering with fixed-income returns via a long-short strategy. The firm is expected to file for regulatory approvals from SEBI within a fortnight.