Kautilya Finance, a real estate investment platform backed by the Washington State Investment Board (WSIB), has exited its non-convertible debenture (NCD) investments in Delhi-based developer DASNAC, generating aggregate cash proceeds of around ₹550 crore in fiscal year 2026, according to livemint.com. The initial investment was made in 2017, marking the conclusion of a multi-year investment relationship through foreign portfolio investor (FPI) and alternative investment fund (AIF) structures.
The Netherlands-based FPI, managed by Aevitas Property Partners, first committed ₹201 crore to listed NCDs issued by E-Homes Infrastructure Pvt Ltd (EHIPL), a special-purpose vehicle of DASNAC. This was followed by additional exposure through both listed and unlisted NCDs, including investments routed via Kautilya Real Estate Fund, an India-focused AIF. The funds were deployed across DASNAC’s luxury residential projects in Noida, such as DASNAC The Jewel of Noida and DASNAC Burj Noida in Sector 75, as reported by livemint.com.
The exit includes repayments of the invested principal and contractual interest earned on the portfolio, reflecting a significant return on investment over nearly a decade. This transaction underscores the growing role of foreign portfolio investors and alternative investment funds in India’s real estate sector. The deal is notable for its scale and duration, with ₹201 crore initially invested in 2017 and ₹550 crore realized in 2026, highlighting the potential for long-term debt investments in prominent residential developments.
While the debt investment has been fully exited, DASNAC and Aevitas Property Partners have held preliminary discussions on a potential equity partnership, according to livemint.com. This indicates ongoing collaboration possibilities between the developer and its foreign investors beyond the debt financing phase.