TFCI Expands Footprint In Alternative Investments, Co-Sponsors Hospitality AIF

Tourism Finance Corporation of India Ltd (TFCI) has taken a decisive step to expand its role in the alternative investment space.

The company will act 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.

As part of this initiative, TFCI will co-sponsor and anchor the Holystone Hospitality Fund.

This equity-focused Category II AIF will see TFCI committing up to five per cent of the total fund corpus.

According to regulatory disclosures, the company has already filed an application with the Securities and Exchange Board of India (SEBI) for the fund’s registration.

Anchor Role in Real Estate Fund

In addition, TFCI will participate as an anchor investor in the Certus Real Estate Fund.

Under this arrangement, the NBFC plans to invest up to ten per cent of the overall fund size.

The company has also submitted the registration application for the Certus Real Estate Fund to SEBI.

Commenting on the development, Managing Director Anoop Bali said the move aligns with TFCI’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,” Anoop Bali said.

From a broader market standpoint, analysts view the initiative as part of TFCI’s transition from a niche tourism-focused lender to a diversified non-banking financial company.

The AIF structure is expected to give TFCI access to equity and quasi-equity investments without materially increasing balance sheet risk.

Established as a specialised NBFC-ML, TFCI provides financial assistance across a wide range of sectors.

Its portfolio includes tourism and hospitality infrastructure, manufacturing, renewable energy, social and urban infrastructure, real estate, NBFC and housing finance company funding, structured credit, and lending against listed securities.

In recent years, the company has also expanded its digital retail lending platform, reinforcing its diversified business model.

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