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

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.

Hospitality Fund
- TFCI will act as co-sponsor and anchor investor in the Holystone Hospitality Fund, a Category II Alternative Investment Fund (AIF).
- Proposed commitment: up to 5% of the total fund corpus.
- Registration application has already been filed with SEBI.

Real Estate Fund
- TFCI will also serve as an anchor investor in the Certus Real Estate Fund, another Category II AIF.
- Investment: up to 10% of the total fund size.
- SEBI registration application submitted.

Strategic Intent
- According to Anoop Bali, Managing Director of TFCI, this move aligns with the company’s long-term diversification strategy.
- The AIF route allows TFCI to support hospitality and real estate sectors in a capital-efficient way, while opening new avenues for value creation.

Broader Transition
- Market participants view this as part of TFCI’s shift from a niche tourism-focused lender to a diversified NBFC with a wider financing and investment mandate.
- The AIF structure provides access to equity and quasi-equity opportunities without materially increasing balance sheet risk.

Current Scope of TFCI
- Provides financial assistance across:
- Tourism & hospitality infrastructure
- Manufacturing
- Renewable energy
- Social & urban infrastructure
- Real estate
- NBFC & housing finance company funding
- Structured credit & lending against listed securities
- Expanding its digital retail lending platform.

This marks a calibrated shift for TFCI — moving beyond traditional lending into asset management and equity-linked opportunities.