ASK Property Fund, part of Blackstone-backed ASK Asset & Wealth Management group, has launched its largest real estate debt vehicle yet, targeting a corpus of ₹3,500 crore as demand for private credit grows amid a healthy pipeline of projects.
The fund, ASK’s fourth debt fund, aims to raise capital from both domestic and offshore investors and will invest in mid-segment housing projects across Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Pune, Bengaluru, Chennai and Hyderabad.
The fund, which includes a green-shoe option of ₹1,500 crore, will look at deal sizes ranging from ₹100 crore to ₹500 crore.
Demand is high for growth capital, and there is a healthy pipeline of projects for potential investment, Amit Bhagat, co-founder, managing director and chief executive, ASK Property Fund, told Mint.
“It was time for us to raise a larger fund. The outperformance of our earlier debt funds, along with Crisil’s fund management grading-1 for the new fund, demonstrates the strength of our underwriting discipline, active asset management and risk management framework,” Bhagat added.
According to the EY Private Credit Report, 2025 closed at $12.4 billion across 166 transactions, up 35% year-on-year in value. Real estate, healthcare and industrial sectors were the largest contributors, with refinancing, acquisition financing and capex funding driving deal flow.
A Credit Pulse Survey by EY last December showed that fund managers continue to rank real estate as the most active in terms of deal flow, despite considering it the riskiest, indicating a growing risk appetite for high-yield opportunities despite concerns around structural complexities and execution-related risks.
“Everyone wants to be in the credit space. It is asset and cash-flow-backed. It is for the investors to decide and differentiate us from the rest, based on our grading and our track record that we have demonstrated with our previous funds,” Bhagat added.
Even as demand for private credit continues to rise, residential real estate sales soften after the post-pandemic boom. Hardening property prices, layoffs in the IT sector, geopolitical tensions, and other uncertainties dented residential growth momentum in 2025, as per Anarock Property Consultants. Home sales in the top seven cities witnessed a 14% decline in 2025, with 3,95,625 units sold in the year compared to 4,59,645 units in 2024.
What ASK’s new fund offers
The new fund will offer both solution capital, including lender replacement and project completion funding, as well as growth capital for acquisitions, including the purchase of projects stalled in NCLT or with established approvals.
The fund is designed to meet capital needs across selected residential opportunities while targeting investment-level returns of 20%.
Before this, ASK Property Fund’s last three debt funds raised a cumulative ₹3600 crore, and have done 30 transactions from them.
Over the past two years, ASK Property Fund has raised ₹2,500 crore across debt and equity strategies. In 2025-26, ASK committed ₹2,100 crore across projects. It also delivered ₹1,300 crore of exits to investors during FY26.
Earlier this week, investment firm Arnya Realestates Fund Advisors said it will launch its second debt fund this year to raise ₹1,000 crore, Mint had reported.