HDFC Asset Management Company (AMC) successfully closed its first venture capital (VC) and private equity (PE) fund of funds on September 30, securing commitments of over Rs 1,200 crore, its MD and CEO Navneet Munot said during the Q2 FY25 earnings conference call.

The fund, HDFC Select AIF FOF - I, marked the company’s strategic entry into the alternative asset space. As a Category II Alternative Investment Fund (AIF), the product aims to diversify across VC and PE AIFs, with equal allocations and no sector restrictions. This milestone reflects HDFC AMC’s ambition to expand beyond traditional mutual funds into high-growth alternative asset management.

"So, we're very happy to announce that we successfully closed our VC/PE fund of fund, the Category II fund of the fund on September 30, where we got commitments of around Rs 1,200-odd crores," Munot said.

HDFC AMC’s overall alternative assets under management (AUM) have grown steadily from Rs 2,400 crore to Rs 4,800 crore over the past six months. Despite the progress, Munot emphasised that the current scale of the alternative business is still in its early stages but holds significant long-term potential.

“We remain committed to identifying and capitalizing on emerging opportunities in alternatives and PMS,” Munot said. He also revealed plans for a private credit product, expected to launch within the next few quarters. “Our private credit team is taking shape, and we aim to build more meaningful products over time.”

HDFC AMC's Portfolio Management Services (PMS) business is also evolving steadily, with the company laying the groundwork for future expansion in the non-mutual fund space. “We expect to provide more updates on our product pipeline soon,” Munot added, signalling the company’s growing focus on scaling up its alternative offerings.

This development underscores HDFC AMC’s strategic shift towards new asset classes, aiming to attract investors seeking diversified investment opportunities.