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SBICAP Ventures-backed SWAMIH Investment Fund-I raises over Rs 15,000 crore at its final close

SWAMIH Investment Fund I, managed by SBI Capital Ventures Ltd., a State Bank Group company, was launched following the announcement of the Special Window by the Finance Minister in 2019. So far, the fund has given final approvals to 127 projects that will in turn complete more than 79,000 homes

December 08, 2022 / 12:56 PM IST

SBICAP Ventures Ltd-backed SWAMIH Investment Fund-I, set up under the Special Window for Affordable and Mid-Income Housing, has completed its final close at Rs 15,530 crore this month.

SWAMIH Investment Fund I is India’s largest social impact fund aiming to provide priority debt financing for the completion of stressed, brownfield and RERA registered residential projects that fall in the affordable, mid-income housing category, a company statement said.

The fund is sponsored by the Ministry of Finance and is managed by SBICAP Ventures Ltd, a State Bank Group company. SBI is also one of the anchor investors of the fund along with Life Insurance Corporation of India (LIC). Other investors include HDFC and major nationalised banks.

The fund had received a commitment of Rs 10,037.5 crore in its first close three years ago on December 6, 2019, where the government of India had committed a fund infusion of up to Rs 5,000 crore. As on date, the fund is appraising 286 projects across more than 30 cities in India which would help complete over one lakh homes. The additional commitment will enable the fund to continue to evaluate deals till December 2024.

Since its launch, the fund has scaled up its investment team to 33 professionals and evaluated more than 1,000 deals across India.

“The State Bank Group will continue to provide all execution capabilities required to fully implement this strategic Government of India initiative. We take pride in being able to consistently achieve new landmarks in our journey of providing relief to homebuyers and in the process contribute towards boosting investments in the Real Estate sector with thorough transparency and efficiency. The increased commitment from the Government of India is a statement of confidence in the execution abilities of SBICAP Ventures Ltd. as the investment manager and the entire team at SWAMIH Investment Fund I,” said Suresh Kozhikote, MD and CEO at SBICAP Ventures Ltd.

“This round of capital infusion marks as a big step in our journey to provide a much needed boost to the country’s real estate industry. We at SWAMIH Investment Fund I continue to closely monitor all construction spend to ensure that the capital is utilised only for completion of the project. The Fund has already achieved construction completion of 19,500 homes and is on track to deliver about 20,000 homes every year for the next 3 years,” said Irfan A. Kazi, Chief Investment Officer, SWAMIH Investment Fund.

At the final closing held in New Delhi on December 6, the fund documents were signed by Pradeep Purohit, Deputy Secretary, Department of Economic Affairs, Ministry of Finance on behalf of Government of India and  Kozhikote.

SBICAP Ventures Ltd., a State Bank Group company, is an alternative asset manager based in India managing funds across private equity, real estate, and fund of funds mandates.It currently manages 3 Alternate Investment Funds (AIF) including Neev Fund I, Neev Fund II, SWAMIH Investment Fund I along with two funds-of-funds namely, Self Reliant India Fund (SRI) and U.K. India Development Cooperation Fund (UKIDCF). Over the years, the firm has attracted reputed global investment partners and continues to deliver on its vision of making sustainable impact.

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first published: Dec 8, 2022 12:56 pm