Vikram Nataraj

With the end of the SIFIDE tax benefits, the Portuguese startup ecosystem will suffer. And let's get real, only tech startups have the potential to radically transform our economic fabric. But they need Venture Capital funding. In the US, two thirds of S&P 500 maket cap comes from companies that were funded by Venture Capital at one point of their life. The country should leverage the few instruments it has to achieve this goal. Golden Visa is one of them and it should be focused on this goal!

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The Age of Institutional Real Estate Real estate capital flows are shifting from speculative development to institutional-grade, yield-backed, governance-strong platforms. India’s commercial and industrial RE continued its momentum in 2025, with Q3 seeing record quarterly inflows of over $2.6B, driven by global allocators increasing exposure to office, warehousing, and data-centre assets. The activity on the ground reflects this pivot: • Brookfield Properties, Blackstone, and GIC continued picking up high-quality office and logistics assets across NCR, Bengaluru, Pune, and Hyderabad, signalling renewed confidence in long-term leasing cycles. • ESR Group acquired industrial land in Pune worth ₹650 Cr, accelerating its strategy to build a pan-India Grade-A warehousing portfolio. • IndoSpace and global pension-backed funds are actively pursuing buyouts of regional warehousing developers to scale national platforms. • In residential, large developers like DLF Limited, Prestige Group, and Godrej Properties Limited are seeing record pre-sales, attracting PE interest for structured equity and land partnerships. The shift is unmistakable: investors now prioritise compliance integrity, transparent documentation, clean title, ESG metrics, and predictable cash flows. Assets meeting these standards are commanding 10–20% valuation premiums. And this is exactly where mid- and growth-stage developers often need the most support to institutionalise their governance, structure deals correctly, and present assets in a diligence-ready format that global capital trusts. In 2026, capital isn’t scarce, institutional-quality real estate is. Which segment do you see consolidating faster office, warehousing, or residential townships? #RealEstate #PrivateEquity #RealEstateInvesting #Infrastructure #Warehousing #CommercialRealEstate #CXOInsights #MergersAndAcquisitions #StrategicCapital BusinessToday

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What is the difference between Category I/II and Category III AIFs? Choosing the right category of AIF Before structuring an AIF, it helps to be clear about what are the differences between the categories. 1) Fund Structure & Liquidity ·Category I/II funds are closed-ended funds. Investors typically cannot exit until the fund’s tenure ends, except as permitted by the fund documents. ·Category III funds may be open-ended or closed-ended. In open-ended structures, investors have the option to redeem subject to any exit/load provisions outlined in the documents. 2) Core Investment Universe: Private markets vs Public markets · Cat. I/II primarily invest in unlisted securities. The deal cycle involves sourcing, building & exiting positions over time. · Cat. III primarily invest in listed/public markets and derivatives (including futures and options). Strategies focus on absolute/relative returns and can be more trading-oriented. 3) Set-Up & Operating Costs ·Cat. I/II are usually more cost-efficient to set up and operate, given the closed-ended structure & lower frequency of entry exit from investments and valuation events. ·Cat. III tend to have higher initial & ongoing costs due to higher SEBI registration fees for Cat III & the operational infrastructure required for active trading (brokerage, margins and more complex fund accounting).     4. Tax Treatment · Cat.I/II enjoys a special pass-through status under the ITA for most income (other than business income). In practice, this means the fund is not taxed on such income and taxation happens directly in the hands of investors. · Cat. III funds do not enjoy pass-through in the same way. The income is taxed at the fund level, and investors receive post-tax distributions/NAVs. Always model net-of-tax returns before deciding. 5.Leverage ·Cat. I/II cannot use leverage other than for temporary funding shortfalls in drawdowns, within prescribed limits. · Cat. III may use leverage as part of the strategy, with regulatory caps of up to 2 times of exposure. Leverage can enhance returns but also magnifies risk and volatility. 6. Investment Time Horizon and Return Profile ·Cat I/II typically run 6–10 year tenures. This aligns with the time it takes to build companies/stabilize assets from early stage to maturity lifecycle. Think of this as patient capital. · Cat III long-only strategies often run 1–3 year horizons, while absolute-return or short/long-short strategies can be even shorter—sometimes weeks to months—reflecting a more market-driven, agile approach. Think of Cat III as “aggressive capital” mastering the public markets. A Simple Way to Decide for you as a Fund Manager · If your edge is in sourcing & growing private deals & your LPs can stay invested for the full tenure with tax pass-through benefits, Cat I/II is the natural fit. ·If your edge is public-markets trading & your LPs prefer dealing-day liquidity & are comfortable with market volatility and leverage, Cat III can be the right home.

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Last week Gridlines posted my article on why investors remain cautious about deploying equity. Some of the reasons mentioned, were the lack of investor confidence, political uncertainty and inferior returns ....but there is also the shift by PE firms towards private credit. Interesting infographic 👇

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