Alternative Investment Fund

  • HNIs and NRIs seeking : diversified real estate investments.
  • Institutional investors looking for enhanced risk-adjusted returns.
  • Family offices exploring non-traditional assets with long-term growth potential.
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Baner, Pune

15.12%

IRR

8%

Rental Yield

Baner Prime

Mega IT Hub, Prime location, Great road connectivity..

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Mulshi, Pune West

15%

IRR

9.04%

Rental Yield

Shere Palace

40+ Earning amenities, 15 Mins from Paud Bus Stand, 25 Mins from Hinjewadi IT Hub..

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Pawana, Mulshi, Pune West

15.35%

IRR

9.04%

Rental Yield

Cliff Cherry

Rent Starts From businesses Commerment, Revenue Sharing Model, A grade Tenant

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A SEBI Registered Category II Alternative Investment Fund (AIF)

Alternative Investment Funds (AIFs) represent the future of non-traditional, high-growth investments, enabling investors to access opportunities in Grade-A commercial real estate, private equity, and infrastructure. Our Category II AIF strategically combines preleased commercial properties (for stable rental income) and under-construction projects (for long-term capital appreciation).

With regulatory transparency and professional management, our fund caters to HNIs, institutional investors, NRIs, and family offices seeking superior returns over traditional financial instruments. Whether your focus is consistent cash flow or capital growth, our diversified portfolio offers the best of both worlds.

About the Fund

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Market Opportunity – Why Now?

India’s commercial real estate market is projected to grow at 13% CAGR, driven by the rise of co-working spaces, IT hubs, and logistics hubs in Tier-1 cities like Bengaluru, Mumbai, and Pune. Investors can capitalize on this opportunity with a regulated, diversified portfolio for long-term growth.

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Key Points

Fund Size : INR 500 Cr, expandable by INR 250 Cr through the Greenshoe Option.

Fund Size : INR 500 Cr, expandable by INR 250 Cr through the Greenshoe Option.

IRR Targets:

  • Fund IRR: 18% to 20%.
  • Preleased Properties IRR: 12% to 14%.
  • Under Construction Assets IRR: 18% to 22%.

Our goal is to ensure that investors benefit from immediate rental income while also participating in long-term value creation through development projects.

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Fund Raising

Investing in Premium Commercial Assets

Our portfolio includes preleased properties and under-construction projects, carefully selected to maximize returns while reducing risks.

Investment Thesis

A Rigorous Process for High-Quality Investments

Our investment process is designed to ensure that only top-tier properties enter our portfolio. This disciplined approach minimizes risks while maximizing returns for our investors.

Book Service
100% Deal Sourcing

We conduct thorough market research to identify the best-performing commercial properties across India’s major cities, including Mumbai, Bengaluru, and Pune.

Pickup on the way
50% Evaluation

Shortlisted properties undergo a rigorous evaluation process, including financial analysis, legal verification, and feasibility assessments to ensure they meet our investment criteria.

Pickup boys arrive
F 20% Shortlisting

Out of all evaluated properties, only a small percentage make it to the final shortlist. These properties are analyzed further for growth potential and risk mitigation.

Pickup boys arrive
1% Transactions Finalized

We finalize less than 1% of all sourced deals, ensuring that only the most lucrative and stable properties are included in the portfolio. This careful selection process ensures superior portfolio performance.

Advantages of Partnering with Highyield

Why Invest with Highyield?

Choosing Highyield as your investment partner provides numerous benefits. Our approach focuses on maximizing returns while minimizing risks through experience, strategic asset selection, and professional management.

Extensive Management Experience

Our team comprises industry veterans with decades of expertise in managing commercial real estate investments. With a deep understanding of real estate trends, market cycles, and investment strategies, we provide expert guidance at every stage—from property acquisition to rent collection and eventual exit.

  • Market Expertise:We specialize in high-demand commercial markets across major Indian cities like Mumbai, Bengaluru, and Pune.
  • Risk Management:Our team identifies opportunities while managing risks efficiently through thorough due diligence and market analysis.
Robust Asset Pipeline

Since November 2022, we’ve identified and evaluated Grade-A commercial assets worth INR 25,000 Cr, demonstrating our deep network and access to premium investment opportunities.

  • Access to Institutional-Grade Assets:We leverage our network to secure exclusive preleased and development-stage properties.
  • Continuous Market Scanning:Our team is always on the lookout for new, high-potential assets, ensuring investors never miss out on lucrative opportunities.
Proven Track Record

Highyield has a history of consistent returns and successful asset management across multiple portfolios. Our expertise allows us to optimize rental yields and achieve targeted IRRs while maintaining full transparency and compliance.

  • Fully Managed Portfolios:We handle every aspect of your investment, from acquisition to tenant management and asset resale.
  • Long-Term Client Relationships:Investors trust us for our reliable performance, proactive management, and regular updates.

Introduction to Alternative Investment Funds (AIF)

What is an Alternative Investment Fund (AIF)?

An Alternative Investment Fund (AIF) is a pooled investment vehicle that provides access to non-traditional asset classes beyond stocks, bonds, and cash. SEBI-regulated AIFs allow investors to diversify their portfolios by investing in real estate, private equity, venture capital, hedge funds, and other alternative assets.

AIFs offer greater flexibility in investment strategies and are often targeted at high-net-worth individuals (HNIs) and institutional investors looking for enhanced returns with manageable risks. AIFs can be structured to focus on either income generation or capital appreciation, giving investors multiple ways to grow their wealth.

Why AIFs Are Gaining Popularity in India

High Growth Potential

India’s commercial real estate market and private equity sector are rapidly growing, creating opportunities for higher returns through AIFs.

Institutional Participation

Large institutions, family offices, and HNIs are increasingly investing in AIFs to diversify portfolios and enhance returns.

Government Support and SEBI Regulation

The regulatory framework provided by SEBI ensures transparency and protection for investors, which has boosted confidence in AIFs.

Increasing Demand for Diversification

Investors are moving away from traditional asset classes to explore non-conventional investments like real estate, private equity, and debt funds.

Flexible Investment Strategies

AIFs allow fund managers to employ sophisticated investment strategies, such as leveraged financing, structured debt, and asset-backed securities, which aren’t available in traditional mutual funds.

AIF Investment Strategies for Optimal Portfolio Growth

Key Investment Strategies Employed by AIFs

1
Risk Mitigation
Diversification is a core strategy. AIFs spread investments across different asset classes, geographies, and industries to minimize risks.
2
Passive Income
Preleased commercial properties within the fund provide consistent rental income, ensuring steady cash flows throughout the investment horizon.
3
Capital Appreciation
Under-construction projects within the portfolio offer higher growth potential once completed and leased to tenants.
4
Leveraged Investments
Some AIFs use leveraged financing to enhance returns, although this strategy also carries higher risk.
5
Exit Flexibility
Investors can exit the fund through secondary market sales or at fund maturity, depending on the structure and asset type.

Minimum Investment Requirements for AIFs

Investment Categories and Requirements

AIFs are divided into three broad categories, each with unique investment structures and minimum thresholds.

Category I AIFs

Focus on venture capital, angel funds, infrastructure funds, and social impact funds.

Minimum Investment: ₹1 Cr for individual investors.

Category II AIFs

Includes real estate funds, private equity, and debt-focused funds.

Our Focus: Investing in preleased and under-construction commercial properties.

Minimum Investment: ₹1 Cr.

Category III AIFs

Hedge funds and PIPE (Private Investment in Public Equity) funds.

Minimum Investment: ₹1 Cr.

Benefits of AIF Investment

Why AIFs Are a Valuable Addition to Your Portfolio
  1. Diversification:AIFs invest across multiple asset classes, reducing concentration risk.
  2. Higher Returns: Achieve IRRs of 18% to 20%, outperforming traditional investments.
  3. Low Volatility:Real estate-based AIFs offer stable income through long-term leases.
  4. Favorable Tax Treatment:Benefit from capital gains tax advantages compared to other financial instruments.
  5. Regulated Environment:SEBI ensures that AIFs maintain transparency, compliance, and investor protection.

Step-by-Step Guide for Novice Investors

How to Invest in AIFs for Beginners

Research and Understand the Fund Structure

Begin by researching the different AIF categories and how they align with your financial goals.

1
2
Risk Tolerance Assessment

Evaluate your risk appetite and determine whether you prefer income-generating assets or capital appreciation-focused investments.

KYC Process

Complete the Know Your Customer (KYC) process to verify your identity and eligibility for investment.

3
4
Subscription Form Submission

Fill out the subscription form for the specific AIF, specifying your investment amount and asset preference.

Track Your Investment

Use the investor dashboard to monitor the performance of your portfolio through real-time updates.

5
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Plan Your Exit Strategy

Determine how you want to exit—either through the secondary market or at fund maturity.

Regulatory Compliance

Ensuring Compliance with SEBI Regulations and Investor Protection

A robust regulatory framework ensures that Alternative Investment Funds (AIFs) operate transparently and provide a secure investment environment for investors. As a Category II AIF, our fund strictly adheres to SEBI’s (Securities and Exchange Board of India) guidelines, maintaining compliance and protecting investor interests throughout the investment lifecycle. Below are key aspects of our regulatory compliance process

Investor Eligibility
  • Accredited Investors:AIFs are open to HNIs (High-Net-Worth Individuals), family offices, and institutional investors.
  • Minimum Investment RequirementIndividual investors are required to commit ₹1 Cr or more to participate in AIFs.
  • KYC (Know Your Customer) Documentation: All investors must complete KYC procedures to verify their identity and eligibility under SEBI regulations.
Disclosure Requirements

We provide transparent and regular reports to ensure that investors are fully informed about their investments:

  • Quarterly Fund Performance Reports:Include IRR, portfolio status, and NAV updates.
  • Annual Audits:Our fund undergoes independent audits, with results shared with investors to ensure transparency.
  • Material Changes: Any changes in investment strategy, risk exposure, or management structure are promptly communicated.
Risk Management Framework

Our risk management policies align with SEBI’s guidelines, ensuring that investor capital is protected through prudent practices.

  • Asset Diversification:Investments are spread across multiple properties and markets to reduce exposure to individual risks.
  • Hedging and Market Monitoring:We closely monitor market trends and use hedging strategies to mitigate risks in volatile market conditions.
  • Compliance with Investment Limits: Category II AIFs must restrict exposure to 25% of the total corpus per company to ensure a diversified portfolio.
Valuation Practices
  • Independent Valuations: All assets are regularly valued by third-party independent valuers, ensuring that the portfolio’s net asset value (NAV) is accurate and fair.
  • SEBI-Compliant Valuation Standards: We follow SEBI’s valuation guidelines, which guarantee transparency and protect investor interests.
Marketing and Reporting Standards
  • Fair Marketing Practices: All promotional materials are aligned with SEBI’s guidelines, avoiding misleading claims or promises of guaranteed returns.
  • Performance-Based Fee Disclosure: Any performance fees charged are communicated upfront, with no hidden costs.
Investor Grievance Redressal Mechanism
  • We have a dedicated investor support team to handle grievances and queries, ensuring a seamless investment experience.
  • Investors can access:
    • Online Grievance Portals: Register concerns online.
    • Response Timeframes: We are committed to resolving grievances within 30 days, as mandated by SEBI.

FAQs

Why invest in AIFs instead of traditional mutual funds? +

AIFs provide access to non-traditional asset classes such as real estate, private equity, and hedge funds, offering higher returns and diversification compared to mutual funds.

What types of risks are associated with AIFs? +

AIFs carry risks such as market fluctuations, illiquidity, and leverage risks. However, these risks are mitigated through diversification and professional management.

Can NRIs invest in Alternative Investment Funds (AIFs) in India? +

Depending on the property, investors can expect up to 18% Internal Rate of Return (IRR) and up to 10% rental yield, making it a potentially profitable investment.

How can I track the performance of my AIF investment? +

Investors receive quarterly performance reports and access to a dedicated investor dashboard, providing real-time updates on portfolio performance..

What happens if I want to exit my AIF investment early? +

AIFs are closed-ended funds, meaning that early exit options may be limited. However, some funds allow secondary market sales or early exit windows at specified intervals.

Is fractional ownership a profitable investment? +

Fractional ownership can be profitable for investors seeking diversification, passive income, and access to premium assets without requiring high capital for full ownership. However, as with all investments, it carries risks that need careful consideration.

What is the drawdown process in AIFs? +

The drawdown process involves releasing funds in phases, aligned with the fund’s investment strategy. This ensures that capital is allocated efficiently over time.

What is the tenure of most AIFs? +

The typical tenure of AIFs ranges from 5 to 7 years, depending on the fund type. Some AIFs also offer an extension period of 1-2 years, if required.

What fees are associated with AIF investments? +

AIFs generally charge management fees, performance fees, and other administrative costs. It is important to review the fee structure to understand the impact on returns..

Are AIFs suitable for first-time investors? +

AIFs are typically geared toward sophisticated investors with a higher risk tolerance. New investors are advised to seek professional financial advice before investing in AIFs.

How is investor protection ensured in AIFs? +

Investor protection is ensured through SEBI’s regulatory framework, independent audits, and regular disclosures, giving investors confidence in fund operations.

How does leverage work in AIFs, and what are its risks? +

Leverage involves using borrowed capital to amplify returns, but it also increases the risk of losses. Not all AIFs use leverage, and those that do must disclose the associated risks upfront.