TFCI Ventures into Alternative Investments with New AIF Partnerships

TFCI is expanding into the alternative investment realm by co-sponsoring and anchoring two Category II AIFs: Holystone Hospitality Fund and Certus Real Estate Fund. This move aligns with TFCI's diversification strategy, enhancing its presence in the hospitality and real estate sectors while leveraging its expertise.

Tourism Finance Corporation of India Ltd (TFCI) is set to broaden its investment portfolio by entering the alternative investment space through two new partnerships. The company announced its role as co-sponsor and anchor investor in two Category II Alternative Investment Funds (AIFs), marking a strategic shift towards equity-linked and asset management opportunities.

TFCI plans to commit up to 5% in the Holystone Hospitality Fund and up to 10% in the Certus Real Estate Fund. Both funds are seeking registration from the Securities and Exchange Board of India (SEBI). TFCI's Managing Director, Anoop Bali, remarked that this initiative aligns with the firm's long-term diversification goals, enabling it to tap into equity markets effectively.

This strategic pivot is part of TFCI's broader transformation from a tourism-focused lender to a diversified non-banking financial company (NBFC). The participation in AIFs not only broadens TFCI's sectoral reach but also offers access to equity and quasi-equity holdings with limited balance sheet implications. This move positions TFCI to enhance its role in sectors like hospitality, real estate, and more.

(With inputs from agencies.)