IDFC Score Fund approaches final close

The manager has launched two real estate debt funds since 2014 to seize opportunities in mid-market housing.

IDFC Alternatives, an Indian alternative investment manager, is approaching the second and final close of its IDFC Score Fund within two months, according to a senior executive from the firm.

The fund is expected to close on a total size of $110 million plus a green-shoe option of $70million. It targets small and medium-sized residential real estate projects with a typical ticket size of $10million to $20million.

It is expecting an internal rate of return (IRR) of 20 percent with a senior secured debt strategy. It reached its first close on $60million earlier this year.

“I think mid-market housing is compelling, office absorption rates have gone up, lease rentals are improving, but luxury housing is going to remain slow. The sentiments are certainly better than few years ago,” said M.K. Sinha, managing partner and CEO of IDFC Alternatives.

IDFC Alternatives’ previous similar fund, IDFC Real Estate Yield Fund, closed on $125million on 2014. The fund has been fully deployed in eight investments with three full exits to date.

IDFC Alternatives is an Indian multi-asset class investment manager managing over $3.4 billion on behalf of leading institutional investors from across the world.

It invests in three distinct asset classes: private equity, infrastructure equity and real estate.