India's rich pivot to real assets after stock returns falter

Résumé détaillé

At least six new vehicles launched this year are seeking to raise more than $1.25 billion for real estate and infrastructure assets, marking a resurgence after previously growing slowly.

Rich investors in India are looking to juice up their portfolios with high-yielding assets, including real estate and logistics, after two years of lacklustre stock market returns.

At least six new vehicles launched this year are seeking to raise more than $1.25 billion for real estate and infrastructure assets, marking a resurgence after previously growing slowly. The trend contrasts with well-heeled investors across much of the world who have piled into stocks that gain exposure from the AI boom.

PAG-backed Nuvama Wealth Management Ltd., which oversees $39 billion in client assets, is one of the local companies leaning in. The Mumbai-based firm raised around $420 million for a commercial real estate fund in partnership with property consultancy Cushman & Wakefield Management and plans to launch more funds that invest in income-generating properties or infrastructure, typically with an eventual sale or listing, Ashish Kehair, chief executive officer, said.

“There is a shift toward private credit and cash-flow generating assets,” Kehair said, adding that these also include real estate investment trusts and investments in logistics and warehousing.

The move reflects a search for steadier returns after Indian equities lost momentum following years of gains. Despite a rally in recent weeks, the benchmark Nifty 50 index has given total returns of just 7% over the past two years versus 29% in the S&P 500 index.

Money raised by Alternative Investment Funds in India from local investors nearly doubled to $64.5 billion from March 2024 to June 2026. While private credit is drawing the most interest, family offices and asset managers are increasingly turning to funds that invest in infrastructure, energy and property.

Unlisted funds, which typically invest in completed assets, are of particular interest for investors because they offer an additional upside if the assets are sold or listed in vehicles such as a real estate investment trust.

Local real asset funds may target annual…

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