Edelweiss Alternative Asset Advisors raises Rs 6,600 cr for ESOF III

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October 20, 2020 2:00 AM

ESOF III, the third fund to be launched in the special opportunities fund series, will be centring its investments around the performing credit space with a focus on providing structured credit to Indian companies.

EAAA said it is looking to generate 16-18% returns through ESOF III.EAAA said it is looking to generate 16-18% returns through ESOF III.

Edelweiss Alternative Asset Advisors (EAAA) on Monday said it has raised Rs 6,600 crore ($900 million) for its alternative investment fund ESOF III. This is the largest fund-raise this year in the Indian private credit space. According to EAAA, this is a strong endorsement of the opportunities in the Indian alternative asset management space, as well as the private debt platform of EAM.

Commenting on the development, Rashesh Shah, chairman and chief executive officer, Edelweiss Group, said international investors who can provide long-term capital will have a lot of opportunities in the Indian credit space. He said, “India has a lot of savings – almost 30% of our GDP is savings – but a lot of that savings comes into what is short-term because Indian savers still like to keep their money at the short-end. We don’t have a large pension industry or a large insurance industry yet. So, having that long term 5-20-year capital is still in short supply. We do think international investors who can provide this money, whether it is in stressed credit or performing credit, have a lot of opportunities.”

ESOF III, the third fund to be launched in the special opportunities fund series, will be centring its investments around the performing credit space with a focus on providing structured credit to Indian companies. The ESOF III strategy has generated strong investor interest and has received commitments from global institutional investors, which include recent investments by Canadian Ontario Teachers’ Pension Plan Board, Florida’s State Board of Administration, Swedish Pension Fund – AP4 and an European insurance investor, among others.

EAAA said it is looking to generate 16-18% returns through ESOF III.

ESOF I and ESOF II, which are a part of the special opportunities fund series, were launched in 2010 and 2015, respectively. The funds have generated returns between 15% and 17%.

Edelweiss Asset Management pioneered private debt in India with the launch of Rs 1000-crore ESOF I in 2010. EAAA, which comes under Edelweiss Asset Management, said it currently has assets under management worth Rs 30,000 crore, and is the largest alternatives platform in the country.

The alternatives platform is focused on providing high quality credit and yield opportunities to global as well as domestic investors across performing credit (corporate and real estate), distressed credit and infrastructure yield.

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