LICHFL Real Estate Debt Opportunities Fund

Overview

A Structured Debt Fund Focused on India’s Housing Growth

LICHFL Real Estate Debt Opportunities Fund – I (LRDOF-I) is the third fund launched by the LIC Group’s fund management platform.

It is a SEBI-registered Category II Alternative Investment Fund (AIF) and an ESG-focused debt impact fund, targeting early-stage investments in India’s housing sector — primarily in affordable housing and SME-led mid-income housing projects.

Fund Size & Tenure

Designed for Long-Term Value Creation

Proposed Corpus

INR 3,000 Crore (USD 375 Million)

Green Shoe Option

INR 1,000 Crore (USD 125 Million)

Fund Tenure

8 Years

Investment Horizon

3 to 6 years per portfolio company

Target Investors

Institutional and Global Participation

The fund is designed to attract a diverse investor base, including:

Development Finance Institutions

Pension & Sovereign Funds

Impact Funds & Fund of Funds

Banks & Financial Institutions

Insurance Companies

Corporates & Government Institutions

Family Offices & Ultra High Net Worth Individuals

Returns Profile

Balanced Risk with Structured Returns

Key Metrics

Hurdle Rate:

10% for INR investors

8% for USD investors

Target IRR:

~20%+

Security Highlights

  • Asset-backed security
  • Promoter pledge & guarantees
  • Cash flow hypothecation
Multi-Layered Protection Mechanism

Security & Compliance Structure

Security is established through registrations across key regulatory forums:
  • Sub-Registrar Office (Land Mortgage)
  • Registrar of Companies (ROC / MCA)
  • RERA Platform

This ensures strong legal enforceability and transparency.

Exit Strategy

Predictable and Self-Liquidating Model

We focus on structured investments across high-growth sectors of the Indian economy.

Primary exits through project-level cash flow realization

Limited dependence on secondary sale or IPO routes

Focus on stable and predictable exit timelines

Investment Strategy

Capital Protection with Growth Upside

The fund follows a disciplined strategy focused on:
  • Investment in project-specific SPVs (private limited companies)
  • Capital protection backed by hard assets
  • Minimum 2.5x cash flow cover
  • Valuation multiples above 1.5x of invested capital

The approach prioritizes risk mitigation while enabling scalable returns.

Fund Management & Governance

Strong Expertise and Risk Controls

Years Avg Experience
0 +
Years Combined Experience
0 +
Robust Risk Management Framework:
  • Three-level due diligence process
  • Active monitoring and periodic site visits
  • Rights on key decision matters
  • ERP-based tracking and reporting
  • Control over sales proceeds and bank accounts
  • Appointment oversight of technical & internal auditors
Platform Strength

Access to High-Quality Deal Flow

The fund benefits from:

Strong relationships with Indian developers

Access to proprietary deal opportunities

Extensive infrastructure and distribution network

Deep market insights across housing segments

Investor Charter

Investor Charter as per SEBI Circular dated December 10, 2021

Investor Charter - LRDORF

Annexure - Y

Annexure-Y as per SEBI Circular dated December 13, 2021

Annexure, November 2025 - LRDOF

Structured Investing. Secure Growth.

LRDOF-I reflects LICHFL AMC’s commitment to disciplined investing, strong risk management, and creating sustainable value through structured debt investments in India’s housing sector.