BlackSoil abandons the last investment of the first fund
Asset management firm BlackSoil Capital has withdrawn its latest investment from BlackSoil Realty Trust, the platform’s premier alternative investment fund (AIF), the company said in a statement.
The first fund, which raised Rs 160 crore five years ago, was mandated to focus on the residential sector in better regions like the Mumbai Metropolitan Area (MMR) and Bengaluru by partnering with developers from medium-sized projects.
The fund, which had made seven investments, was raised mainly from high net worth individuals (HNI) and family offices.
The fund has an average gross internal rate of return (IRR) of 19%.
The latest release came from a project by Rajesh Constructions, a real estate developer who operates in the Mumbai market. The investment was in a project located in Borivali, Mumba, which had been delayed for reasons such as the anti-dumping imposition, the IL&FS fiasco, the real estate downturn and the pandemic.
Besides BlackSoil Realty Trust, BlackSoil manages two other AIFs, including the Walton Street BlackSoil Real Estate Debt Fund, which invests in affordable and mid-range residential segments in major Indian metropolises. The fund has so far deployed 90% of the body of Rs 320 crore raised in 2018 on eight transactions.
It even recorded partial outflows of investments via the project’s cash flows.
The other AIF is the Rs 126 crore BlackSoil India Credit Fund.
BlackSoil is an industry-independent alternative credit platform that has deployed over Rs 1,900 crore over the past five years on over 100 transactions, 40% of which are in the residential real estate segment.
BlackSoil Group ventured into the lending space by acquiring a non-bank lender in 2016 and setting up a lending platform. The lender has so far deployed Rs 1,500 crore on more than 100 transactions, more than 70% of which are secured credit transactions.