JM Financial Asset Management launches Rs 1,500 crore Pre-IPO AIF, expands private markets platform

JM Financial Asset Management has entered the fast-growing pre-IPO investment space with the launch of its first Pre-IPO Alternative Investment Fund (AIF) under Category II, marking a strategic expansion of its alternative assets platform. The fund, which has received approval from the Securities and Exchange Board of India (SEBI), is targeting a corpus of Rs 1,500 crore.

The new fund will focus on investing in companies that are expected to list within the next 18 months, leveraging JM Financial Group’s strong presence and execution capabilities in the equity capital markets. The launch comes at a time when India’s private markets are showing increasing depth, supported by a robust IPO pipeline, rising domestic participation and a more mature startup ecosystem.

Pre-IPO Fund

Category II Alternative Investment Funds (AIFs) are SEBI-regulated, privately pooled investment vehicles that invest primarily in unlisted private equity, debt securities, and real estate, holding over 75% of total AIF industry commitments.

According to JM Financial Asset Management, the Pre-IPO Fund is part of its broader vision to build a comprehensive AIF ecosystem that provides specialised capital solutions across credit, real estate and pre-IPO opportunities. Pre-IPO investments have gained traction in recent years as investors look to access growth-stage companies ahead of listing, with the potential for superior risk-adjusted returns compared with traditional public market investments.

The fund will be managed by Jaisinh Suchak, Managing Director – Alternative Investment Funds at JM Financial Asset Management Ltd, who brings over 23 years of experience in financial services and more than a decade of buy-side expertise. The firm said the fund will draw on JM Financial Group’s integrated platform, including its investment banking, research and capital markets capabilities, to identify and evaluate investment opportunities.

Commenting on the launch, Vishal Kampani, Vice Chairman and Managing Director of JM Financial Ltd, said the introduction of the Pre-IPO AIF aligns with the growing maturity of India’s private markets. He highlighted that the alternative investment fund industry has expanded rapidly, with over 1,600 registered AIFs and total commitments reaching Rs 15.05 lakh crore as of September 2025. Kampani added that rising investor sophistication, increasing domestic participation and a supportive regulatory framework are key drivers of this growth.

Private market offerings & taxes

With this launch, JM Financial Group continues to diversify its private market offerings and strengthen its position as a long-term investment partner. The firm aims to leverage its deep market insights, strong governance framework and fund management capabilities to unlock differentiated opportunities for investors seeking exposure to India’s evolving private markets landscape.

Category II AIFs are generally "pass-through" vehicles in terms of tax treatment, meaning income is taxed in the hands of the investor rather than the fund, with specific rates applying to capital gains based on the holding period.

JM Financial Asset Management Ltd manages a wide range of investment solutions for individual and institutional investors. As of January 31, 2026, the company’s assets under management stood at Rs 13,342.43 crore. The broader JM Financial Group operates across investment banking, wealth and asset management, private markets and affordable housing finance, with a nationwide presence across more than 230 cities.