India’s financial services firm Edelweiss Financial is planning to launch a distressed assets fund in August this year.
The new fund is targeting a corpus of $740million to $1billion with a first close of $350million to $400million in October or November this year. The fund has a four- year investment period, starting from first close. The capital is expected to stay invested for six to eight years in each company.
According to a local press report, the fund will work alongside with Edelweiss’s asset reconstruction company (ARC) to turn around distressed assets and nurse them back to financial health.
Edelweiss confirmed the report but declined to provide further information on the fund.
Edelweiss ARC is one of the most active players in the distressed asset class in India, and just started a new division last month to turn around the portfolio companies in its distressed assets resolution division.
The Edelweiss ARC is the largest ARC in India with Rs27,000 crore ($4 billion) of assets under management.
Edelweiss Group is one of India's leading diversified financial services companies, providing a broad range of financial products and services. It has an asset base of over INR32,000 crore with revenues of INR5,316 crore and net profits of INR414 crore for full-year 2016.