Bengaluru-based co-working space provider BHIVE said Wednesday that it is winding up its maiden alternative investment fund, floated in May last year, after its fund manager quit and that it is raising a new private equity-style vehicle.
Sandeep Gupta, who was managing the debut fund, resigned to pursue new opportunities outside BHIVE, the company said. Gupta was also the co-founder and chief business officer of BHIVE Group’s alternative asset management platform BHIVE Alts.
The alternative asset platform is now launching another vehicle focused on investing in co-working spaces. The vehicle’s size will be about Rs 400 crore, the same as that of the debut fund. It is unclear who will manage the new fund.
“Change is inherent in the investment landscape. Our team... is committed to delivering optimum results and upholding our investors' trust in us,” said Sheshagiri Rao Paplikar, founder and chief executive of BHIVE.
The debut fund—BHIVE Commercial Real Estate Opportunities Fund Series 1—had set out to raise about Rs 400 crore to invest in commercial office real estate. Last year, the company said it had secured commitments for 60% of the total, or about Rs 240 crore.
The new fund’s investment strategy seems largely the same as that of the previous one. But BHIVE said the new fund has an expanded strategy with a larger scope for investment.
As per the company, the new fund will acquire completed commercial real estate properties at prime locations with clear titles and occupancy certificates.
“We see a tremendous opportunity in this (AIF) segment and will go aggressive with our plans as we embark on the next growth phase of the organisation,” Paplikar said.
The company is seeking high net-worth Individuals (HNIs) and family-owned businesses looking to invest in commercial real estate as its limited partners (LPs) with a minimum investment of Rs 1 crore.
Founded in 2014 by Paplikar, BHIVE Group operates co-working spaces as well as an alternative investment platform. BHIVE Workspaces, the co-working arm of the startup, is present in Bengaluru with 25 managed office assets that total about 1.5 million square feet area. The Bengaluru-based startup launched BHIVE Alts in 2022 and says it has assets under management of about Rs 160 crore.
In May last year, the company raised an undisclosed amount of funding from Zerodha co-founder Nikhil Kamath, Gruhas Proptech co-founder Abhijeet Pai and Blume Ventures.
In 2017, BHIVE Workspaces raised $1.2 million (around Rs 7.7 crore) in a funding round led by Blume Ventures. It also raised $1 million (around Rs 6.7 crore) in a funding round led by Blume Ventures in 2016.
