Edelweiss branch wants to raise $1 billion in third emergency fund

New Delhi: Edelweiss Alternative said Tuesday it aims to raise USD 1 billion (about Rs 8,000 crore) in its third asset emergency fund, looking for strong opportunities in the space.

The company has already raised $425 million or Rs 3,400 crore for the third Special Situations Fund (SSF III) of major insurance companies and pension funds worldwide, as well as domestic high-net individuals and family offices, it said in a statement.

Under an SSF, the firm focuses on asset-heavy companies and identifies viable underlying companies with strong reversal potential, or invests in situations where asset settlement requires capital and domain expertise, it said.

In the second fund launched in 2018, it invested Rs 10,500 crore and recovered the money of more than Rs 9,500 crore from the portfolio companies, it said.

In the latter fund, it aims to raise $1 billion with a $500 million greenshoe option, the statement said.

Of the Rs 3,400 crore raised so far for the third SSF, it has already invested Rs 1,000 crore in two special situation opportunities, saying there is a strong pipeline of opportunities in the space.

?Special situation opportunities present an exciting opportunity to generate superior risk-adjusted returns for investors,? Edelweiss Alternative head for special situation strategy, Amit Agarwal, said.

He added that the strategy is suitable for both companies looking for specialized financing solutions to improve their corporate fortunes, and financial institutions looking to sell or dissolve their existing portfolio assets.

Acquisition financing in the context of a bankruptcy process also emerges as a good opportunity, he said, adding that investors can generate high returns, similar to equity, while limiting downside risk as a large proportion of fund investments are made. done in the nature of covenant-heavy lending instruments.

The company statement claimed that Edelweiss Alternative Asset Advisors pioneered private debt in India with the launch of a USD 230 million (then Rs 1,000 crore) fund and now has USD 5 billion or Rs 40,000 crore in assets under management.

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