Tourism Finance Corporation of India Limited to co-sponsor hospitality AIF, anchor real estate fund; SEBI filings made

PNN
New Delhi [India], January 5: Tourism Finance Corporation of India Ltd (TFCI) has decided to expand its presence in the alternative investment space by acting as a co-sponsor and anchor investor in two Category II Alternative Investment Funds (AIFs), signalling a calibrated shift towards equity-linked and asset management opportunities.
In a regulatory disclosure, the company said it will act as co-sponsor and anchor investor in the Holystone Hospitality Fund, an equity-focused Category II AIF, with a proposed commitment of up to 5% of the total fund corpus. An application for registration of the fund has already been filed with the Securities and Exchange Board of India (SEBI).
In addition, TFCI will act as an anchor investor in the Certus Real Estate Fund, another Category II AIF, with an investment of up to 10% of the total fund size. The application for registration of the Certus Real Estate Fund has also been submitted to SEBI.
Commenting on the development, Anoop Bali, Managing Director of TFCI, said the move is aligned with the company's long-term diversification strategy. "Our participation as co-sponsor and anchor investor reflects TFCI's intent to leverage its sectoral expertise while partnering with experienced fund managers. The AIF route allows us to support the hospitality and real estate sectors in a capital-efficient manner, while creating additional avenues for value creation," Bali said.
Market participants view the initiative as part of TFCI's broader transition from a niche tourism-focused lender to a diversified non-banking financial company (NBFC) with a wider financing and investment mandate. The AIF structure is also expected to provide TFCI with access to equity and quasi-equity opportunities without materially increasing balance sheet risk.
TFCI, a specialised NBFC-ML, provides financial assistance across tourism and hospitality infrastructure, manufacturing, renewable energy, social and urban infrastructure, real estate, NBFC and housing finance company (HFC) funding, structured credit, and lending against listed securities. The company has also been expanding its digital retail lending platform.
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