Canonicus Capital has closed a Rs. 200 crore private equity fund that will focus entirely on real estate projects across the National Capital Region (NCR). Led by Rajan Gupta, the fund aims to back high-potential projects that need timely capital support, especially in a market where execution and delivery timelines often make or break developer credibility.
Gupta said the fund has been designed with clear guardrails: strong downside protection, secure investment structures and a sharp focus on returns. The strategy leans heavily on last-mile financing and short-term bridge funding, areas where liquidity gaps frequently stall construction despite robust demand. By stepping in with structured debt at crucial stages, the fund hopes to push projects over the finish line and unlock value for both developers and investors.
Gupta explained that private equity comes with high hurdle-rate expectations, which means every rupee deployed must work harder and smarter. According to him, the fund will prioritise projects where capital can act as a catalyst for timely delivery rather than merely plugging financial holes. This includes helping developers complete near-ready residential towers, enabling pre-launch approvals, or funding mid-stage commercial assets that carry strong market potential.
He added that the firm is also open to acquiring premium under-construction assets that can eventually be sold to Real Estate Investment Trusts (REITs). With global investors showing increasing appetite for stabilised, income-generating properties, Gupta believes there is a sizeable opportunity for those willing to shoulder development and execution risk upfront.
Global pension funds and long-term institutional investors continue to remain cautious about construction-stage exposure, preferring fully leased, operational properties. This has created a gap in the market—one that Canonicus Capital sees as its core strength. By taking up projects at the mid-development stage and driving them to completion, the firm aims to create a pipeline of high-quality assets that can later be monetised through REIT platforms at a healthy premium.
The company’s leadership says its approach is built on disciplined underwriting, strong governance and active asset management. The fund will target opportunities where delays are due to temporary capital shortages rather than structural issues. These include stalled but viable housing projects, commercial developments waiting for last-mile funding, and assets where quick execution can significantly lift valuations.
With the closure of this fund, Canonicus Capital joins a small group of private equity players in India with a specialised focus on structured credit and turnaround-driven real estate investing. The firm expects demand for such capital to remain strong, given the pace of urban expansion in NCR and the increasing preference among homebuyers for projects with clear delivery certainty.
Industry watchers say the timing works in the company’s favour. NCR continues to see rising residential demand, steady commercial leasing and sustained investor interest, but capital gaps remain a recurring hurdle for developers. A fund with a targeted strategy, they say, can play a meaningful role in improving market efficiency and helping more projects reach the finish line.
