A recent development in the real estate finance industry is the resignation of numerous senior executives from both domestic and international companies to launch their own businesses. Experts in the field claim that the strong desire for funds from alternative investment funds to purchase land, combined with tighter regulations on non-banking financial institutions, is a primary factor driving executives’ propensity for becoming entrepreneurs.
About six of these executives have left their positions to start their own funds in recent months; the most recent is Nipun Sahni, a partner at the US-based investment firm Apollo Global Management.
Sahni is probably going to establish a fund for real estate investments. “Should Sahni decide to launch it, Apollo has agreed to anchor a real estate credit fund,” the source stated.
“My 30-year career has had the finest chapter with Apollo… Sahni remarked, “I’m excited to begin the next chapter in my career as an entrepreneur. I’m currently consulting Apollo on all of its real estate holdings and national projects.
Throughout his lengthy career, Sahni has invested and managed about Rs 20,000 crore. Since 2015, he has led Apollo. He was the nation’s top Merrill Lynch real estate fund manager before joining Apollo. More than fifty transactions have been finalized by him, including agreements with Ascendas, Piramal, DLF, Lodha, Runwal, Sattva Salarpuria, and the Embassy.
In addition to Sahni, Ankur Gulati, a managing director of real estate investments located in Mumbai, left Canada’s CPP Investments (CPPIB) after working there for almost ten years. His goal is to establish a public equity alternative investment fund (AIF). Gulati declined to respond when reached.
Other real estate finance executives heading into entrepreneurship include Amar Merani, chief investment officer and head of real estate assets at 360 One Asset; Ashish Singh, partner and head of real estate for India and South East Asia at the UK-based private equity firm Actis; Avinash Sule, chief executive for industrial and logistics and hospitality at development and investment firm RMZ; and Chanakya Chakravarti, head of indirect investments, Asia-Pacific, Ivanhoe Cambridge, the real estate division of CDPQ.
According to those in the know, Singh will remain with Actis until the end of the following year, at which point he may pursue an entrepreneurial position.
According to insiders, Merani, who is now serving his notice term at 360 One Asset, is considering launching a proptech business, floating a fund, or doing both. It was not possible to get in touch with Merani, who had previously worked with Xander Finance, for remarks.
The CEO of Motilal Oswal Alternates’ real estate funds, Sharad Mittal, left the company last year to start his own fund management company.
Senior executives at finance companies were preoccupied with refinancing in the last ten years, according to Shobhit Agarwal, managing director of Anarock Capital, before they were involved with stressed assets. There isn’t much work left now. Their previous high level of activity has suddenly decreased. They are considering their own funds as a result,” Agarwal stated.
Additionally, he noted that as more firms list, the focus has moved from the private to the public sphere. After the IL&FS disaster in 2018, according to a recent resignation of a senior executive, NBFC activities in the real estate industry decreased, while the demand for AIF money increased because these organizations are less regulated.
“While AIFs are not subject to this restriction, NBFCs are prohibited from lending for the purchase of land. People are considering launching their own funds because of this, he said. He also mentioned that several senior executives in the real estate industry left their jobs in 2015–16 and joined NBFCs because of the latter’s high demand for funds.
