Ontario Teachers’ backs Edelweiss’ private debt strategy

The Mumbai-headquartered asset manager is due to close its latest performing credit fund soon as the Canadian LP backs its India-focused approach.

Ontario Teachers’ Pension Plan, the Toronto-headquartered pension fund administrator, has decided to commit a total of $350 million to the India private credit strategy of Edelweiss Alternative Asset Advisors, the alternative asset management arm of Edelweiss Group, a statement from the Canadian pension on Wednesday showed.

Its latest performing credit fund, Edelweiss’ Special Opportunity Fund III is in the final stages of LP fundraising. The firm plans to announce the final close of ESOF III in the next few weeks, a spokesperson for Edelweiss told Private Debt Investor last week. They added that the manager received commitments of $790 million in the third performing credit fund and had reached $3.8 billion in assets under management as of 2 September.

EAAA has two private debt fund series: The Edelweiss India Special Asset Fund series that invests in special situations and distressed debt opportunities; and the ESOF series, which targets performing credit investments.

In December 2018, the manager held a final close of the latest distressed investment fund, Edelweiss India Special Asset Fund II , at $1.3 billion, as PDI reported. The investment firm also manages Edelweiss Infra Yield Plus Fund.

Gillian Brown, Ontario Teachers’ senior managing director in the capital markets team said in the statement: “We are pleased to enter into a long-term partnership with Edelweiss Group, which has a proven track record and demonstrated ability to originate, underwrite, structure and realise private credit investments in India.”

Ontario Teachers’ commitment is focused on investing in performing and distressed opportunities in India, the statement showed. PDI’s requests for further comments from Ontario Teachers’ spokespeople were not returned by publication time.

Other Canadian funds working with the group include Caisse de dépôt et placement du Québec. As PDI reported in January 2019, the Quebec City-headquartered pension acted as an anchor investor in the $1.3 billion-sized EISAF II fund. In October 2016, CDPQ signed a four-year partnership agreement with the Mumbai-headquartered financial group, which included the pension fund’s commitment of up to $700 million for Edelweiss’ private debt investment platform.