Here is a plan to transfer real estate credit assets to an Alternate Investment Fund (AIF). IIFL Asset Management Limited (IIFL AMC) has executed a binding term sheet with a renowned global alternate investment manager (Investor) for 33.3% contribution by the Investor in the AIF, post due diligence to the satisfaction of the Investor.

The AIF will have a sponsor's contribution of around 33.3% from IIFL Finance Ltd. The balance contribution in the AIF is expected from other investors. The AIF will have a target size of Rs 3600 crore for secondary purchase of NCDs of real estate projects and providing additional liquidity for completion of the same. The real estate credit assets AIF plan has been approved by the Board of Directors of IIFL Finance on January 29.

IIFL Asset Management claims to have pioneered the Alternative Investment Funds (AIF) in India. Each of its alternative funds reaches beyond the mainstream investment universe and taps into unique opportunities regardless of boundaries. For instance, IIFL Real Estate Fund invests in fixed income real estate opportunities.

IFL Finance (formerly known as IIFL Holdings Ltd.) is a Systemically Important - Non Deposit taking systemically important, non-deposit accepting non-banking financial company (NBFC-ND-SI). The company’s diverse product suite including Developer and Construction Finance and Capital Market Finance.