Edelweiss arm aims to raise USD 1 billion in third distressed asset fund

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New Delhi: Edelweiss Alternative on Tuesday said it is targeting to raise USD 1 billion (about Rs 8,000 crore) in its third stressed asset fund, eyeing strong opportunities in the space.

The company said in a statement that the company has already earmarked USD 425 million or Rs 3,400 crore for the third ‘Special Situation Fund’ (SSF III) from large insurance companies and pension funds as well as domestic high net individuals and family offices globally. Has raised Rs.

Under SSF, the company focuses on asset heavy companies and identifies viable underlying businesses that have a strong turnaround potential, or invests in situations where asset resolution requires capital and domain expertise. Yes, it said.

In the second fund launched in 2018, it invested Rs 10,500 crore and received over Rs 9,500 crore in cash from portfolio companies, it said.

Under the latest fund, the target is to raise USD 1 billion with a greenshoe option of USD 500 million, the statement said.

Of the Rs 3,400 crore raised so far for the third SSF, it has already invested Rs 1,000 crore in two special circumstances, and said the space has a strong pipeline of opportunities.

Exclusive position opportunities provide an exciting opportunity for investors to generate superior risk-adjusted returns, ? Edelweiss Alternative Head for Special Situations Strategy, Amit Agarwal said.

He added that this strategy caters to both corporates who are looking for specialized financial solutions to transform their business fortunes and also financial institutions looking to sell or liquidate their existing portfolio assets.

Acquisition financing is also emerging as a good opportunity set under the bankruptcy process, he said, adding that investors can generate returns similar to equities, while reducing downside risk as a large portion of fund investments are contract-heavy. are made in the nature of credit. Device.

The company statement claimed that Edelweiss Alternative Asset Advisors pioneered private lending in India with the launch of a USD 23 million (then Rs 1,000 crore) fund in 2010, and now has USD 5 billion or 40,000 under management. Has assets worth Rs.

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