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

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.