Edelweiss Alternative Asset Advisors, the alternative asset management arm of Edelweiss Group, has teamed up with Meritz Financial Group, the Seoul-headquartered asset management company, for a real estate financing platform in India.
The $425 million-sized platform will mainly buy existing residential real estate loans to complete commercially viable projects. The platform has various funds and plans to raise as much as $1 billion in capital across vehicles.
“We are enthusiastic about our partnership with Edelweiss, because of their strong governance track record, proven expertise in real estate financing, backed by strong operating and project management capabilities,” said Alex Choi, a Seoul-based managing director at Meritz Securities in a statement.
Further details on Meritz Financial Group’s contribution to the Edelweiss platform were not disclosed.
Separately, it is understood that Edelweiss is back in the market with its third performing credit fund, Edelweiss’ Special Opportunity Fund III (ESOF III), targeting $1 billion.
Data compiled by PDI show that its predecessor fund, ESOF II, held a final close on $350 million in March 2017. ESOF I garnered $230 million during 2010 and 2011 from institutional investors, which included a commitment from AP Fonden 1, a Swedish pension fund.
EAAA also has a distressed fund series, Edelweiss India Special Asset Fund (EISAF). The latest fund, EISAF II, held a final close at $1.3 billion in December 2018, as PDI reported. EISAF II’s investment activities are overseen by Amit Agarwal, head of Edelweiss’s Stressed Assets Strategy.
The EISAF series typically invests in stressed assets for both corporate and real estate turnarounds. For Fund II, EAAA plans to partially source deals through the group’s asset restructuring company platform, EARC, to acquire bank loans besides providing rescue financing and debt restructuring to enterprises in India.
Requests for comments on the developments to spokespeople for Edelweiss Group and Meritz Securities and Meritz Real Estate Asset Management were not returned.