Sources close to Red Fort Capital revealed the private equity firm is in discussions with global investors. The talks are being held in line with Red Fort Capital's plan for its third real estate fund. The announcement for their third real estate fund came a little over a year after sealing its second fund. The new fund is thought to be valued between US$500 million and US$750 million.

The new fund is one of the biggest capital-raising activity in the realty and property market in India. "Red Fort has a very good track record, having returned over US$100 million (INR606 crore) to investors since 2009, and is seen as a strong bet," said the sources. Red Fort Capital enlisted Abu Dhabi Investment Authority, the world's biggest sovereign fund, among its Limited Partners. Sources said existing institutional investors would back the bulk of the new fund.

Red Fort Capital presently manages assets worth about US$900 million across two funds. Red Fort Capital managing director, Parry Singh was not immediately available to comment on the story.