Sanjiv Bajaj-led Bajaj Finserv Ltd is charting a fresh course into the alternative investment business, signaling a significant broadening of its financial services portfolio. Already established in lending, asset management, and insurance, the group is now entering asset classes that focus on early-stage equity and real estate investments through a newly formed subsidiary.
Formation of Bajaj Alternate Investment Management Ltd
Bajaj Alternate Investment Management Ltd (Bajaj Alts), a wholly owned subsidiary of Bajaj Finserv, has been incorporated to spearhead this diversification. The firm is preparing to raise between ₹1,500 crore and ₹2,000 crore each for two key funds: an early-stage equity fund and a commercial real estate-focused alternative investment fund (AIF). Regulatory approval filings with SEBI are expected shortly.
To lead this new vertical, Bajaj Finserv has hired Lakshmi Iyer as Group President, Investments, and CEO of Bajaj Alts. Iyer, who previously served as CEO of investments and strategy at Kotak Alternate Asset Managers, brings significant expertise to the table.
Early-Stage Venture Capital Strategy
The early-stage equity fund will target Series A and B companies, with deal sizes ranging from ₹25 crore to ₹100 crore. Bajaj Finserv has already deployed ₹200 crore from proprietary capital into half a dozen startups, including KisanKonnect and Ecosoul Home, which will later be warehoused into the fund.
The focus will be on automation, technology, and businesses helping consumer brands accelerate their go-to-market strategies. Additional proprietary investments of ₹150–200 crore are also expected before the fund’s formal launch.
This approach reflects a deliberate decision to avoid the crowded buyout and private credit segments, where valuations have become less attractive. Instead, Bajaj Alts aims to carve a meaningful role in early-stage venture capital by leveraging the Bajaj Group’s reputation and strong investor backing.
Real Estate Investment Plans
Parallel to its venture capital strategy, Bajaj Alts is setting up a commercial real estate-focused fund, with a planned size of around ₹2,000 crore. Each investment through this fund will typically range between ₹500 crore and ₹600 crore. The strategy emphasizes both core and development assets in India’s top metropolitan cities, where yield opportunities remain compelling.
Additionally, the firm plans to launch a Category-3 AIF in the real estate segment, blending a long-only approach with quantitative overlays and long-short strategies to offer fixed income-like returns. This hybrid offering is aimed at meeting the growing appetite of investors who seek diversified exposure in real estate beyond traditional models.
Investor Focus and Market Appetite
According to Iyer, there is strong interest among high-net-worth and ultra-high-net-worth individuals, both in India and overseas, to partner with credible institutions for differentiated opportunities. Bajaj Finserv intends to anchor these funds with its own capital, demonstrating long-term commitment and “skin in the game” to prospective investors.
The group believes that investors from both tier-I and tier-II cities are increasingly looking for sophisticated investment avenues, making this an opportune time to expand into alternatives.
Strategic Implications
This move underlines Bajaj Finserv’s ambition to evolve into a more holistic financial powerhouse. By adding alternative investments to its already diverse portfolio, the group is strengthening its positioning in wealth creation and asset diversification. For the Indian financial ecosystem, this signals growing institutional participation in venture capital and real estate funds, further deepening the market.
Bajaj Alts is not just a new subsidiary—it is a strategic step toward future-proofing the Bajaj Group’s financial services empire.
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Disclaimer
This article should not be interpreted as investment advice. For any investment decisions, consult a reputable financial advisor. The author and publisher are not responsible for any losses incurred by investors or traders based on the information provided.