Red Fort Capital Closes $500 Million For Its Second fund

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New Delhi: New Delhi-based private equity real estate fund, Red Fort Capital has raised $500 million in its second fund from overseas investors. The investors in the round include large institutional investors like Sovereign wealth funds, insurance companies, and pension funds, among others. “In continuation of our last seven year strategy, we will continue to focus on financing middle class residential housing for which we believe there is a deep demand on India,” says Parry Singh, Managing Director, Red Fort Capital.

With the close of the fund, the PE firm would have around $900 million under its management. The firm had raised $375 million as part of its first fund in 2007.

The firm makes investments predominantly in residential real estate projects with a typical size in the range $15 million to $100 million. It has made over 14 investments throughout India in residential, commercial, logistics, and hospitality assets. Its portfolio investments include Lotus Boulevard, Tropicana, KG Signature City, Silver Oak Villas, Delhi Heights, Delhi One, Esencia, Lotus 300, Red Fort Towers, Godrej Genesis, and Exora Business Park, among others.

Commenting on the private Equity market in 2012, Singh says, “Lending remains tight and the FIIs have temporarily left the market. we think that the Indian real estate market is a long term growth story and these short term dips create buying opportunities for PE players.”

The firm has returned more than $100 million to its investors since 2009, and made its first close of about $80 million in April 2011.