New Delhi, Nov. 27 -- Real estate investment firm Mt K Kapital, backed by Mumbai-based developer Rustomjee Group, has launched its second fund with a target corpus of $450 million (Rs 4,000 crore), the company said in a statement.
The firm had raised Rs 790 crore for its maiden fund, Mt K Resi Development Fund I, which included a 20% sponsor commitment from Rustomjee.
The new fund, nearly six times the size of its first, will back developers across key markets including Mumbai, NCR, Pune, and Bengaluru, with the aim to invest at the acquisition stage and through the project development lifecycle.
From its maiden fund, Mt K Kapital had invested only in projects of its sponsor Rustomjee Group.
"With our second fund, we look forward to expanding this proposition across the country as we enter the markets of Pune, Bengaluru, and NCR. The continued support of our investors has been a significant encouragement, and the confidence they placed in us during the first fund has helped shape our expansion strategy," said Binitha Dalal, founder and managing partner, Mt K Kapital.
Speaking about the development, Boman Irani, chairman and managing director, Rustomjee Group, said, "The Mt K platform, backed by Rustomjee, has made considerable progress since its inception and it has reaffirmed my thesis of making real estate investments a win-win for all stakeholders. With the second fund, we are confident that the real estate industry stands to benefit even more meaningfully from Mt K's approach and development mindset. We are certain that the platform will continue to grow consistently and emerge as a major institutional player for the real estate sector from an investment perspective."
The development comes shortly after VCCircle reported that Mt K Kapital had begun making exits from its maiden fund while kicking off groundwork for its next offering. The first fund is fully deployed across 10-12 redevelopment projects of Rustomjee in the Mumbai Metropolitan Region (MMR).
Dalal had earlier said that the second fund would tap capital pools comprising institutions, affluent investors and family offices from both domestic and offshore markets.
"Our investment domain was limited to the projects of our parent company Rustomjee for the first fund, but we will expand our horizon this time around and back projects of other developers. As we mature with newer offerings, we will seek collaboration and partnerships outside of our home territory," Dalal had told VCCircle.
For its maiden fund, Mt K Kapital had raised capital from investors such as SBI, ICICI Bank, SBI Life and Famy Care, along with several prominent family offices. Rustomjee Group, the fund sponsor, commits 20% of the corpus across each fund.
A bunch of investment firms are also out in the market with new real estate-focused offerings. NCW, a joint venture between Nuvama and Cushman & Wakefield, is raising Rs 4,000 crore for its maiden fund Prime Offices Fund.
Aryna Real Estate, founded by former Motilal Oswal executive Sharad Mittal, is managing and raising two funds for the sector. Motilal Oswal Real Estate (MORE) is also preparing to launch its next fund.
Published by HT Digital Content Services with permission from VC Circle.