Edelweiss Financial Services Ltd, which is expanding its alternative investment funds business, is eyeing a record real estate investment fund.
The Mumbai-based financial services firm, through unit Edelweiss Alternative Asset Advisors Ltd, is raising up to $1 billion for its first residential real estate fund, a top executive told Mint.
Christened Edelweiss Real Estate Fund, the investment vehicle is a structured credit, offshore fund that is looking to invest $15-75 million in each transaction. It aims at a first close of about $350 million in a month’s time, the report added.
Though several fund houses are looking to raise new funds, this could be one of the biggest ever. Earlier, Red Fort Capital was believed to be looking at a similar corpus for a new fund, but the firm's co-founders have recently split and the focus is now on generating exits.
Edelweiss is looking to invest in projects of mid-sized developers, Venkat Ramaswamy, Edelweiss Financial Services executive director and co-head of global asset management, told Mint.
Edelweiss Financial entered the real estate advisory and investment banking services business in June last year, and hired Ramashrya Yadav as the unit's CEO. The company provides services in four areas — credit, financial markets and asset management, life insurance and commodities. Real estate advisory will fall under credit and fixed-income basket of the company.
The company is expanding its alternative investment funds business by adding venture capital and private equity as asset classes to its existing hedge fund, distressed assets and special situations funds business. It recently appointed Pranav Parikh as head of private equity, seed and venture capital funds.
In June, it raised $205 million for its Special Opportunities Fund II, marking the first close of the fund. This fund will invest in privately-negotiated collateralised credit transactions. It is being advised by Edelweiss Alternative Asset Advisors Pte Ltd, Singapore.