SynopsisASK Property Fund is launching a new Rs 3,500 crore debt fund. This fund will finance residential projects in key Indian cities like Mumbai, Delhi NCR, Pune, Bengaluru, Chennai, and Hyderabad. The fund aims to support developers with structured financing for mid-segment housing. It will also focus on lender replacement and completing stalled projects.TIL CreativesImage for representation Mumbai: ASK Property Fund, part of the Blackstone-backed ASK Asset & Wealth Management group, is planning to raise Rs 3,500 crore through its fourth real estate debt fund as alternative investment managers continue to expand credit strategies aimed at residential projects amid sustained demand for structured financing from developers.The vehicle, ASK Real Estate Special Situations Fund IV, is looking to invest in mid-segment housing projects across Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Pune, Bengaluru, Chennai and Hyderabad.The fund, including green shoe option of Rs 1,500 crore, will undertake lender replacement, project completion funding and growth capital, including financing for acquisitions of stalled projects undergoing insolvency proceedings or assets with established approvals.“The outperformance of our earlier debt funds against the benchmark shows the strength of our underwriting discipline, active asset management and risk management framework. With a track record of 40 full exits delivering a simple average IRR of 19% and 1. 8x investment multiple, we are confident of generating strong risk-adjusted returns,” said Amit Bhagat, Co-founder, MD & CEO, ASK Property Fund.According to him, through this fund, ASK Property Fund is aiming to strengthen partnerships with leading developers, offer tailored capital solutions, and support the growth of India’s residential real estate market.The fundraising plan comes as private credit funds increasingly fill funding gaps left by traditional lenders, particularly in residential developments requiring structured capital and project-specific financing solutions.The fund is aiming for investment-level returns of 20% through debt investments and special-situation opportunities. The company said it intends to raise capital from both domestic and offshore investors.The company also returned around Rs 1,300 crore to investors during 2025-26. Among the exits, it received Rs 650 crore from a Noida project, generating an XIRR of 21% and an investment multiple of 2. 01x.It also exited Kalpataru’s Borivali project with proceeds of Rs 244 crore and an XIRR of 18%, while an investment in D&A Realty’s Bandra project generated Rs 205 crore of proceeds and an XIRR of 21%.Over the past two years, ASK Property Fund has raised around Rs 2,500 crore across debt and equity strategies from domestic and offshore investors. In 2025-26, the firm committed around Rs 2,100 crore across projects with developers including Mantra Group, Shapoorji Pallonji, Gami Developers, Satya and KREEVA.The investments included asset acquisitions through insolvency proceedings involving projects previously funded by other real estate private equity investors.ASK Property Fund said its first debt fund has been fully exited with a gross investment XIRR of 19.4% and a gross investment multiple of 1. 83x. Debt Fund II is expected to be fully exited by March 2027. The fund manager has raised Rs 9,500 crore since 2009 and invested across projects spanning 73 million sq ft, primarily in MMR, NCR, Bengaluru, Pune and Chennai.Read More News on...moreless