Key Takeaways
- • Certus Capital closed $15.7 million (Rs 150 crore) in its first close for Certus India Opportunities Fund 2, targeting a total corpus of $52.4 million (Rs 500 crore) with an additional green-shoe option of Rs 500 crore.
- • The fund is anchored by Tourism Finance Corporation of India (TFCI) as a key limited partner contributing 10% of the target corpus, alongside domestic investors and non-resident Indian participation.
- • Certus targets approximately 15% net returns through real estate credit investments focused on mid-market-plus and premium residential projects, employing a capital recycling model using its balance sheet to originate deals and sell down portions to wealth firms, institutions, and NBFCs.
- • Since inception, Certus has committed Rs 2,500 crore across deals including two international transactions with eight completed exits and current AUM exceeding Rs 1,000 crore; the firm deployed Rs 1,000 crore in the three years through FY25 and an additional Rs 1,000 crore between January and June 2026.
- • Recent major commitments include Rs 275 crore to a last-mile residential deal with Hyderabad's Vasavi Group and Rs 275 crore with 4S Developers, demonstrating accelerating deployment velocity in the Indian residential market.
Summary
Certus Capital, founded by former KKR executive Ashish Khandelia, has achieved first close on its second India-focused real estate fund at $15.7 million, marking continued growth for the real estate investment and advisory platform. The fund targets a total corpus of $52.4 million with an optional green-shoe expansion of equivalent size, positioning Certus to deploy significant capital into India's residential real estate sector over the coming period.
The fund's capitalization reflects a domestic-led investor base supplemented by non-resident Indian capital. Tourism Finance Corporation of India serves as a cornerstone limited partner, committing 10% of the target corpus and providing institutional credibility alongside participation from wealth management firms and other financial institutions. This investor composition underscores the fund's positioning within India's institutional investment landscape, particularly among entities with exposure to tourism and real estate financing sectors.
Certus employs a distinctive capital recycling strategy that differentiates its operational model. The firm originates transactions using its own balance sheet, then systematically sells down portions of the underlying bonds to secondary investors including wealth firms, institutions, and non-banking financial companies. This approach allows Certus to maintain control over security structures and deal underwriting while freeing capital for re-deployment into new opportunities. The fund targets approximately 15% net returns from real estate credit investments concentrated in mid-market-plus and premium residential segments.
The firm's track record demonstrates material scale and execution capability. Since inception, Certus has committed Rs 2,500 crore across transactions including two international deals, completed eight exits, and currently manages more than Rs 1,000 crore in assets. Notably, deployment velocity has accelerated sharply; the firm deployed Rs 1,000 crore over three years through FY25, then deployed an equivalent Rs 1,000 crore in just six months between January and June 2026. Recent commitments include Rs 275 crore to a last-mile residential deal with Hyderabad-based Vasavi Group and Rs 275 crore with 4S Developers, signaling aggressive capital commitment into the residential development segment.
The fund's capitalization reflects a domestic-led investor base supplemented by non-resident Indian capital. Tourism Finance Corporation of India serves as a cornerstone limited partner, committing 10% of the target corpus and providing institutional credibility alongside participation from wealth management firms and other financial institutions. This investor composition underscores the fund's positioning within India's institutional investment landscape, particularly among entities with exposure to tourism and real estate financing sectors.
Certus employs a distinctive capital recycling strategy that differentiates its operational model. The firm originates transactions using its own balance sheet, then systematically sells down portions of the underlying bonds to secondary investors including wealth firms, institutions, and non-banking financial companies. This approach allows Certus to maintain control over security structures and deal underwriting while freeing capital for re-deployment into new opportunities. The fund targets approximately 15% net returns from real estate credit investments concentrated in mid-market-plus and premium residential segments.
The firm's track record demonstrates material scale and execution capability. Since inception, Certus has committed Rs 2,500 crore across transactions including two international deals, completed eight exits, and currently manages more than Rs 1,000 crore in assets. Notably, deployment velocity has accelerated sharply; the firm deployed Rs 1,000 crore over three years through FY25, then deployed an equivalent Rs 1,000 crore in just six months between January and June 2026. Recent commitments include Rs 275 crore to a last-mile residential deal with Hyderabad-based Vasavi Group and Rs 275 crore with 4S Developers, signaling aggressive capital commitment into the residential development segment.
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