Edelweiss raises Rs 525 cr from Sanaka, others for business expansion

The Edelweiss group is got a Rs 525 crore fund infusion from growth-focused private equity platform Sanaka Capital and a few other co-investors.

The fund raised will be pumped into Edelweiss Global Investment Advisors, its investment advisory business.

While Sanaka Growth SPV I has committed to invest around Rs 308 crore, talks are on with others for an additional Rs 217 crore, the company said on Tuesday.

"We look forward to working with the Sanaka team and to capitalise on emerging opportunities and take our investment advisory business to the next level," group chairman Rashesh Shah said.

Sanaka group founder Shankar Narayanan said his fund is confident that Edelweiss Global Investment Advisors will capture growth opportunities through product expansion and by entering new geographies.

The partnership is in line with the overall strategic growth plan initiated by the Edelweiss group in 2017 under which it would separate its three businesses-- credit, investment advisory and insurance -- into distinct entities, based on synergies and consumer segments.

Each business vertical will have its own set of a ring-fenced capital base, and an independent Board, the release said.

Edelweiss Global Investment Advisors is into wealth management, capital markets, asset management and asset reconstruction and manages USD Rs 1,07,800 crore assets.

Separately, Edelweiss announced a partnership between Edelweiss Alternative Asset Advisors and South Korean financial services company Meritz Financial group, to launch the first fund of the financing platform.

The first fund of this platform is targeted to be of USD 425 million and is targeting to raise USD1 billion, primarily from similar international institutional investors over the next 12 months.

The platform will house funds that will buy out existing residential realty loans and provide requisite completion financing to good quality, commercially viable projects. The funds will be managed by the group's alternative asset management arm.

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