Edelweiss prepares to list its alternatives arm

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Subscribe to enjoy similar stories. Edelweiss Financial Services Limited is preparing to list its step-down subsidiary Edelweiss Alternative Asset Advisors Limited (EAAA), which will be the first initial public offering (IPO) in the Indian private capital segment, three people informed on the matter said, requesting to remain anonymous. The IPO, which is partly aimed at reducing the parent company’s debt, is likely to be predominantly an offer for sale.

“Axis Capital is advising on the issue," one of the people said. “The company is expected to file its draft papers in a few months." Edelweiss will table the proposal in its upcoming board meeting in October-end, the second person cited above said. “In the US, KKR, Blackstone, Apollo have all been listed, and the company is studying that," the person said.

Earlier, in an investor call on 5 August, Edelweiss group co-founder Rashesh Shah had said that a dual process of either a sale to an investor or an IPO was being considered for EAAA. EAAA, which manages private investment vehicles across performing credit, structured credit, real estate and infrastructure yield, managed ₹56,342 crore of assets at the end of June 2024, according to its annual report for FY24. Axis Capital and Edelweiss did not respond to a request for comment on Monday.

The company would need to win over investors who may wonder about the erratic nature of revenues in the alternatives business, some veterans said. “Edelweiss can be bold enough to be first in this space, but the question remains if investors have the maturity to understand the value of such a business," said Abizer Diwanji, founder of Mumbai based consultancy firm NeoStrat Advisors LLP Services. “While a mutual fund does not have carried