EAAA Alternatives Closes Rs 2,500 Cr Real Assets Fund, Eyes 20% IRR

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AuthorIshaan Verma|Published at:
EAAA Alternatives Closes Rs 2,500 Cr Real Assets Fund, Eyes 20% IRR
Overview

Alternative asset manager EAAA Alternatives has secured over Rs 2,500 crore in its final close for a multi-strategy real assets fund. This marks India's first diversified platform in domestic alternative investments, targeting energy, transport, and warehousing. The fund aims for 18-20% gross internal rate of return (IRR) through yield distributions and capital gains.

EAAA Alternatives Secures Major Fundraise

Alternative asset manager EAAA Alternatives announced the final close of its multi-strategy real assets fund, raising over ₹2,500 crore. This fund represents India's first diversified platform of its kind within the domestic alternative investment sector.

Fund Deployment and Strategy

The Infrastructure and Real Assets Fund, structured as a Category II Alternative Investment Fund (AIF), comprises a base corpus of ₹1,000 crore with an additional ₹1,500 crore green shoe option. Capital will be strategically deployed across various real asset segments, including energy, transport, warehousing, and structured transactions like private infrastructure investment trusts (InvITs).

EAAA Alternatives is focusing on assets with established operating models that promise consistent cash flows. These are underpinned by strong counterparties and long-term contracts or concession agreements. Subahoo Chordia, CEO of EAAA Alternatives, stated the firm's objective is to raise patient capital for portfolios offering diversification and steady, predictable long-term returns.

Investment Horizon and Return Profile

Approximately seven to ten investments are slated over a three to four-year deployment period. Positioned as a medium-risk strategy, the fund seeks to offer diversification across different asset classes and life cycles. Returns are anticipated from annual yield distributions and capital gains realized upon asset exit. The fund targets a gross internal rate of return (IRR) of 18% to 20%, building on the success of its Infrastructure Yield Plus series, which is tracking close to a 20% gross IRR.

Expanding Real Assets Platform

This new fund bolsters EAAA Alternatives' existing real assets platform, which invests in transportation, energy, and commercial real estate. As of September end, the firm managed real assets with an aggregate of around ₹22,000 crore in assets under management across seven active funds and one infrastructure investment trust. The firm has significantly expanded its real assets portfolio, growing from four assets in 2021 to over 30 assets.

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