Edelweiss Alternate Asset Advisors, the alternative asset arm of Edelweiss Capital, has made a first close of its Asset Re-Construction (ARC) fund at Rs 75 crore. The fund will be used to buy non-performing and toxic assets of banks.
“Our ARC fund is raised from domestic investors and will be used to buy NPAs of banks,” Edelweiss Executive Director and Co-Founder Venkat Ramaswamy told VCCircle. He did not reveal the target size of the fund.
Recently, Edelweiss closed its Special Opportunities Fund at $230 million and made two investments totalling $65 million. The fund is planning to deploy another $100 million this calendar year, which was reported by VCCircle earlier.
Other institutions involved in the business of ARC are ICICI-promoted Asset Reconstruction Company of India (Arcil), UTI-promoted ASREC India Ltd, IFCI-promoted Assets Care Enterprise (ACE) Ltd, ADA Group-promoted Reliance ARC, Kotak Mahindra ARC, Pridhvi Asset Reconstruction and Securitisation Company and International Asset Reconstruction Company (IARC), formed by State Bank of India Chairman and telecom regulator M.S. Verma and former Bank of America CEO Arun Duggal.
Rashesh Shah-led Edelweiss, one of India’s leading diversified financial services Group, offers a large range of products and services spanning across asset classes and consumer segments. Its businesses are divided into Investment Banking, Brokerage Services, Asset Management and Financing. It recently roped in S Ranganathan, the CFO of Bank of America Merryl Lynch, as Chief Financial Officer.
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