DHFL Venture Capital Fund

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DHFL venture capital fund was launched by Dewan Housing Finance Ltd. The DHFL fund for venture capital has marked the entry of Dewan Housing Finance Ltd. into real estate fund in India.

A venture capital fund implies a fund that invests in real estate in order to make profit for all its unit holders. The DHFL capital venture fund has been approved by the SEBI.

The DHFL Venture Capital Fund plans to raise around ` 250 crore from its investors. It also has a ` 100 crore green shoe option. The venture capital fund of DHFL is a close-ended fund for a period of 7 years and has the option to extend the maturity date by an additional 2 years. The DHFL Venture Capital Fund has been investing in a balanced manner in both, residential and commercial properties. Instead of focusing on real estate, the DHFL Capital Venture Fund has been focusing on developing entire properties because they give more returns.

In order to increase its value, the DHFL fund for venture capital has been focusing more on secondary locations. The returns expected by the Dewan Housing Finance Ltd. from the capital venture fund of DHFL has been between 20-25%. The fund have been open to institutes and investors who are typically high-net-worth individuals. The minimum that an institute can invest is ` 10 crore and for the high-net-worth investors, the minimum investment needs to be worth ` 2 crore.

For the arrangement of institutional clients, ICICI Securities have been hired where the DHFL Venture Capital Fund has started to invest from the beginning of 2006. The fund has given a great fillip to the real estate sector in India because more fund has since become available for the development of the real estate. DHFL Venture Capital Fund has helped the real estate sector to grow by a considerable margin.

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