Indian debt fund reaches $205m first close

The vehicle will focus on privately arranged secured loans within the sub-continent.

Edelweiss Alternative Asset Advisors announced that the firm’s second credit vehicle has reached a first close of $205 million. New and existing investors including pension funds and insurers committed to the Singapore-based but India-focused investment vehicle, the firm said. 

The fund is targetting $400 million with the hard-cap set at $500 million and a lifetime of six years. The final close is expected by end of this year, said Venkat Ramaswamy, executive director and co-head of global asset management in response to emailed questions from PDI.

The firm declined to comment on the return target for the vehicle.

The fund will accept listed and unlisted shares as well as real estate assets as security for the loans it makes, Ramaswamy said. 

The corporate debt fund will support Indian business owners with flexible financing including secured loans for both operating and holding companies seeking support for growth strategies, stake enhancement as well as acquisitions, Ramaswamy said. He added that sourcing is done directly by the fund team and Edelweiss relationship managers.

“Credit is a scalable asset class in India and Edelweiss' investment strategy provides a good way to play the India growth story in a risk-adjusted manner. Acceleration of India's economic growth has led to an increasing requirement of capital by business owners in India and we are well-positioned to meet their needs and simultaneously providing the fund investors with an opportunity to participate in the company's growth while avoiding equity-like risk,” said Ramaswamy.

The new vehicle is the successor fund to the $230 million 2010 vintage EW Special Opportunities Fund II. Edelweiss Alternative Asset Advisors is advising the new fund. 

Edelweiss Alternative Asset Advisors platform advises global and domestic investors on investing in liquid, illiquid and hybrid investment strategies in India. Edelweiss Financial Services provides credit, agency, life insurance and balance sheet management services.