Edelweiss aims to mop up as much as $1 bn in infra fund
Photo Credit: Shah Junaid/VCCircle

Edelweiss Alternative Asset Advisors Ltd, the alternative investment arm of financial services group Edelweiss, is launching Edelweiss Infrastructure Yield Plus (Fund) with a target corpus of Rs 2,000 crore ($312 million) and a greenshoe option of Rs 4,500 crore ($703 million).

Edelweiss Infrastructure Yield Plus is a category I alternative investment fund which will look at buying quality operating assets and generating mid-teen returns including regular annual cash distribution, the firm said in a statement.

“Globally, infrastructure is recognised as a sustainable asset class and a desirable alternative to volatile equity markets and low-yielding fixed-income investments. We have launched a one-of-its-kind infrastructure fund that focuses on buying high quality operating assets rather than investing in high-risk under-construction assets,” Nitin Jain, chief executive of Global Wealth and Asset management at Edelweiss Group, said in a statement.

“The fund opens up opportunities for both domestic as well as foreign investors in a unified structure. Our in-depth understanding of this space over the last 10 years has helped us build a significant track record in managing exits of infrastructure companies through secondary sale, M&A, IPO, InvITs, etc, having executed transactions over $4 billion,” said Jain.

Subahoo Chordia, head of infrastructure, industrials and real estate, will lead the fund’s core team.

Edelweiss Alternative Asset Advisors manages seven funds catering to global and domestic investors across illiquid strategies in India including collateralised credit, real estate and distressed assets.

Edelweiss group offers asset management and advisory capabilities and currently has Rs 193,000 crore of assets under management. It offers end-to-end solutions to developers from financing real estate project development, project monitoring, supporting developers in distress situations till the project is completed.

Earlier this month, Edelweiss marked the final close of its maiden domestic realty fund - Edelweiss Real Estate Opportunities Fund - at Rs 500 crore ($78 million).

Infrastructure funds

In July, The Economic Times reported IL&FS Investment Managers Ltd, the private equity arm of Infrastructure Leasing and Financial Services Group, received commitments for a $1 billion (Rs 6,450 crore) fund that will invest in infrastructure and allied sectors.

The IL&FS India Infrastructure Fund will invest in growth and operational assets and has been structured to target investors keen on receiving a regular yield together with emerging market returns, according to its annual report.

Other infrastructure funds that are mobilising capital include Morgan Stanley’s maiden vehicle for the sector.

Kaup Capital is also on the road to raise a smaller infrastructure fund.

The other key player in infrastructure is IDFC Alternatives, which closed its last infrastructure fund at $900 million in 2014.

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