Key Takeaways
- • At least six new vehicles launched in 2026 are seeking to raise more than US$1.25bn for real estate and infrastructure assets, a resurgence after slow prior growth, according to Bloomberg.
- • Nuvama Wealth Management, which oversees US$39bn in client assets, raised US$420mn for a commercial real estate fund with Cushman & Wakefield and plans further income-generating property and infrastructure funds, per CEO Ashish Kehair.
- • The Nifty 50 has delivered total returns of just 7% over two years versus 29% for the S&P 500, driving Indian wealthy investors toward yield-oriented real assets.
- • Money raised by Alternative Investment Funds from local investors nearly doubled to US$64.5bn between March 2024 and June 2026.
- • Local real asset funds may target annual returns of 12% to 15%, versus yields under 8% on three- to five-year AAA-rated corporate bonds; Bloomberg notes actual returns vary.
Summary
Wealthy investors in India are shifting capital toward high-yielding real estate and logistics assets after two years of lacklustre stock market returns, according to Bloomberg. At least six new vehicles launched this year are seeking to raise more than US$1.25bn for real estate and infrastructure, marking a resurgence after slow growth in these segments. The trend runs counter to wealthy investors in much of the world, who have concentrated in AI-linked equities.
Mumbai-based Nuvama Wealth Management Ltd, which is backed by PAG and oversees US$39bn in client assets, is among the local firms leaning in. It raised US$420mn for a commercial real estate fund in partnership with Cushman & Wakefield and plans further funds investing in income-generating properties or infrastructure, with an eventual sale or listing. CEO Ashish Kehair said there is a shift toward private credit and cash-flow-generating assets, including REITs and logistics and warehousing investments.
The move reflects a search for steadier returns. The benchmark Nifty 50 has returned 7% in total over the past two years, compared with 29% for the S&P 500, despite a recent rally. Money raised by Alternative Investment Funds in India from local investors nearly doubled to US$64.5bn from March 2024 to June 2026. Private credit attracts the most interest, while family offices and asset managers are also turning to infrastructure, energy and property funds. Unlisted funds are of particular interest because they offer additional upside if assets are sold or listed in vehicles such as REITs.
Neo Wealth, a Mumbai-based firm with US$15.4bn in assets under advisory and management, said real-asset funds were historically reserved for institutional investors such as pension managers and global private equity and real estate funds. Karan Shah, head of fixed income and real assets, said family offices now participate through large specialised vehicles, particularly where sponsors seek exits or primary capital. Neo Wealth raised about 10.4 billion rupees (US$111mn) in July for its Real Asset Yield Fund and more than US$500mn across two tranches of its Neo Infra Income Opportunities Fund.
Allocations are rising. According to an August report by Julius Baer and EY India, many Indian family offices now allocate 40% to 45% of portfolios to alternatives, including private credit, venture capital, REITs and InvITs, up from traditional anchors in listed equities, fixed deposits, real estate and gold. Citi's global family office report, by contrast, shows family offices globally directing more capital to public equities while keeping significant private market exposure. EAAA India Alternatives Ltd, the country's largest listed alternative asset manager, listed in Mumbai earlier this month and oversees nearly US$5.2bn in fee-paying assets across real estate, infrastructure and private credit as of June, including nearly US$3bn in real-asset funds.
Mumbai-based Nuvama Wealth Management Ltd, which is backed by PAG and oversees US$39bn in client assets, is among the local firms leaning in. It raised US$420mn for a commercial real estate fund in partnership with Cushman & Wakefield and plans further funds investing in income-generating properties or infrastructure, with an eventual sale or listing. CEO Ashish Kehair said there is a shift toward private credit and cash-flow-generating assets, including REITs and logistics and warehousing investments.
The move reflects a search for steadier returns. The benchmark Nifty 50 has returned 7% in total over the past two years, compared with 29% for the S&P 500, despite a recent rally. Money raised by Alternative Investment Funds in India from local investors nearly doubled to US$64.5bn from March 2024 to June 2026. Private credit attracts the most interest, while family offices and asset managers are also turning to infrastructure, energy and property funds. Unlisted funds are of particular interest because they offer additional upside if assets are sold or listed in vehicles such as REITs.
Neo Wealth, a Mumbai-based firm with US$15.4bn in assets under advisory and management, said real-asset funds were historically reserved for institutional investors such as pension managers and global private equity and real estate funds. Karan Shah, head of fixed income and real assets, said family offices now participate through large specialised vehicles, particularly where sponsors seek exits or primary capital. Neo Wealth raised about 10.4 billion rupees (US$111mn) in July for its Real Asset Yield Fund and more than US$500mn across two tranches of its Neo Infra Income Opportunities Fund.
Allocations are rising. According to an August report by Julius Baer and EY India, many Indian family offices now allocate 40% to 45% of portfolios to alternatives, including private credit, venture capital, REITs and InvITs, up from traditional anchors in listed equities, fixed deposits, real estate and gold. Citi's global family office report, by contrast, shows family offices globally directing more capital to public equities while keeping significant private market exposure. EAAA India Alternatives Ltd, the country's largest listed alternative asset manager, listed in Mumbai earlier this month and oversees nearly US$5.2bn in fee-paying assets across real estate, infrastructure and private credit as of June, including nearly US$3bn in real-asset funds.
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