Mumbai-based Alpha Alternatives Fund Advisors today said it has achieved first close of its inaugural infrastructure fund with a commitment of USD 450m from Indian family offices.

The Alpha Alternatives Build India Infrastructure Fund aims to raise USD 750m, including a greenshoe option of USD 250m, the group’s management told reporters today in a press briefing in Mumbai.

Managed by Partner Kaushal Biyani, the vehicle will invest in distressed, construction-stage and operating highway assets.

The fund has a five-year tenor that can be extended up to two years. For the first close, it secured commitments from about 100 family offices.

Alpha Alternatives is aiming for a second close in about six months with commitments from domestic financial institutions, Founder and Managing Partner Naresh Kothari said. For the final close, it will target commitments from global infrastructure investors.

“We are targeting limited partners from all geographies as we look to introduce investors to India,” he said.

The fund will also progressively target investments in segments including ports, data centres and power transmission.

Investors have committed more than USD 1.25bn to the group’s illiquid alternative strategies, including the latest amount, Biyani said at the briefing.

The group is planning to set up a highways infrastructure trust next year, which will be listed as a public trust.

Bhopal-based Dilip Buildcon last year agreed a deal with Alpha Alternatives to set up a roads trust for a portfolio of 18 highways in the hybrid annuity model. Alpha was to receive a 26% stake in the portfolio as well as 10% of the parent company, Dilip Buildcon, through a preferential allotment of warrants, according to an announcement.

Dilip Buildcon has completed construction and sold 26% of three of its projects so far to Alpha.

The developer will be the operating partner and will progressively receive units when it transfers its assets to the trust.

Alpha Alternatives Group was established in 2013. Its overseas presence includes offices in Singapore, London and Dubai, which help manage capital for its international clients.