SBI Funds Management Ltd. is planning its first technology-focused fund for private firms, people familiar with the matter said, as India’s largest asset manager follows rivals in bulking up in the fast-growing alternative investment fund industry.The $200 million fund will be co-sponsored with Bengaluru-based venture capital firm 3one4 Capital Management LLP, the people said, asking not to be identified because the information is private.Also Read: SBI Funds pays razor-thin banker fees on top India IPO of 2026The two companies are awaiting regulatory approval from the Securities and Exchange Board of India before launching the fund. SBI Funds did not respond to an emailed request for comment, while 3one4 Capital declined to comment.The country’s $175 billion alternative investment fund industry has expanded rapidly in recent years, fueled by demand from ultra-high-net-worth investors seeking higher-yielding assets. Several of SBI Funds’ peers such as ICICI Prudential Asset Management Co. and Axis Asset Management Co. have built sizeable alternatives businesses alongside their traditional mutual funds operations.Also Read: SBI Funds IPO jackpot turns 13 employees into crorepatisSBI Funds is keen to expand in the alternatives segment due to its growth potential, Chief Executive Officer Debasish Mishra told reporters at the firm’s listing ceremony on Tuesday.