Systematix plans Rs 1,000 crore funds after 148% SME IRR

Systematix Group has disclosed two Rs 1,000 crore alternatives vehicles, including an equity opportunities fund listed as launched in May 2026 and a real-estate fund proposed for October 2026, after its fully subscribed Rs 125 crore SME fund reported a data-centre platform exit generating about 148% internal rate of return (IRR).

What alternative funds has Systematix disclosed?

Systematix has disclosed four Alternative Investment Fund (AIF) offerings across Categories I, II and III. Its India SME Growth Fund, a close-ended Category I AIF, was launched in August 2025 with a Rs 125 crore fund size that includes a Rs 25 crore greenshoe option. The presentation lists the fund as fully subscribed and specifies a minimum investment ticket of Rs 1 crore.

The India SME Growth Fund is focused on high-growth small and medium enterprises across seven sectors: data centre, fast-moving consumer goods, defence, financial technology, power, industrial engineering and façade solutions. The presentation does not disclose the number of investments, the amount deployed, or allocations among these seven sectors, but it identifies a data-centre platform as the source of its reported exit.

Systematix also lists the India Select Equity Fund as a proposed October 2026 Category III AIF. Unlike the close-ended SME fund, the India Select Equity Fund is described as open-ended and equity-focused, with a Rs 1 crore minimum ticket. The presentation says Securities and Exchange Board of India approval has been received, while not stating a fund size or fundraising status for this vehicle.

How do Systematix's Rs 1,000 crore funds compare with its SME fund?

Systematix's India Equity Opportunities Fund and Systematix Real Estate Fund are each stated at Rs 1,000 crore, compared with Rs 125 crore for the SME fund. That makes each larger vehicle eight times the stated size of the fully subscribed SME fund. Both are classified as close-ended Category II AIFs, while their investment mandates and disclosed timing differ.

The India Equity Opportunities Fund is intended to invest in mid- and late-stage companies with established business models seeking growth capital. Its Rs 1,000 crore stated size includes a Rs 250 crore greenshoe option, and its disclosed minimum ticket is Rs 1 crore. This mandate is defined by company stage and funding need, unlike the SME fund's stated seven-sector approach.

The proposed Systematix Real Estate Fund is targeted at premium residential projects with marquee top-10 developers. The Rs 1,000 crore fund size includes a greenshoe option, according to the presentation footnote, but the source does not specify its amount. It also does not identify developers, projects, locations, a minimum investment ticket, or fundraising progress before the proposed October 2026 launch.

What does the 148% SME-fund exit disclose?

Systematix reports that a data-centre platform exit from the India SME Growth Fund generated about 148% IRR. This is the only AIF exit-return figure given in the presentation, covering neither a total fund return for the Rs 125 crore SME vehicle nor returns for the Rs 1,000 crore equity and real-estate vehicles.

The disclosed 148% figure is linked to one exit rather than the entire SME portfolio. The presentation does not provide the investment date, holding period, capital invested, exit proceeds, number of completed exits, or whether the reported IRR is before or after fees. It likewise does not disclose how much of the Rs 125 crore fund was allocated to the data-centre platform.

The reported exit and the larger fund plans are at different stages. The SME fund was launched in August 2025 and is fully subscribed, while the real-estate fund is proposed for October 2026. The India Equity Opportunities Fund is listed with a May 2026 launch status, but the presentation does not give its subscription level, investments or realised exits.

How does Systematix's PMS offering fit alongside its AIF plans?

Systematix's named portfolio management services, or PMS, strategy has about Rs 180 crore of assets under management (AUM), compared with Rs 125 crore for the SME AIF and Rs 1,000 crore for each larger Category II AIF. The Dynamic Investment Portfolio PMS is therefore larger than the stated SME fund but smaller than either of the Rs 1,000 crore alternatives vehicles.

The Dynamic Investment Portfolio PMS follows a 25%-25%-50% allocation across large-cap, mid-cap and small-cap stocks, respectively. Systematix reports a three-year compound annual growth rate (CAGR) of 22.4% and a five-year CAGR of 21.2%, a difference of 1.2 percentage points. The presentation labels the performance data as of 31st Sep'26 and describes the strategy as top-quartile across market cycles.

Systematix says the Dynamic Investment Portfolio PMS is being relaunched under a new entity and will no longer accept fresh capital in its current structure. Two other PMS offerings are listed with July 2026 launch status: Systematic Emerging Leaders PMS, with 15 to 20 stocks and a maximum 10% stock weight, and Million to Billion PMS, which targets companies with market capitalisation below Rs 10,000 crore and holds 15 to 25 stocks with the same 10% cap.

Conclusion

Systematix's disclosed alternatives strategy combines a fully subscribed Rs 125 crore SME fund, one reported data-centre exit at about 148% IRR, and two Rs 1,000 crore Category II vehicles. The expansion moves from a seven-sector SME mandate toward growth capital for mid- and late-stage companies and premium residential projects with top-10 developers.

The next disclosed event is the proposed October 2026 launch of the Systematix Real Estate Fund alongside the proposed India Select Equity Fund. Management's stated aspiration is to become a leading alternative fund manager focused on mid-market companies across equities and real estate; fundraising, deployment, portfolio and exit disclosures for the Rs 1,000 crore funds remain matters to watch.