Edelweiss sees a boom in private credit market, raises Rs 8,000 crore for third fund
Edelweiss Alternatives has raised its third special situation fund of ₹8,000 crore from a mix of prominent global institutional investors and large Indian family offices as it sees attractive opportunities offered by robust sales of secondary loans.
While many underlying assets are operating well, they require tailored solutions to reach sustainable debt levels. So, Edelweiss believes that the private credit market will boom in the coming decade, growing from its present size of $14 billion to $100 billion.
Over the past year, Edelweiss Alternatives has already deployed nearly ₹3,500 crore, which is over 40% of the total raised, across eight transactions in various sectors, including roads, steel, paper, hotel leased offices, and real estate.
The firm is looking to invest from ₹250 crore to ₹2,500 crore in such deals. It is currently evaluating a pipeline of nearly ₹4,000 crore across diverse opportunities and looking to maintain its focus on superior risk-adjusted returns.
From its second special situation fund, Edelweiss has deployed over ₹10,000 crore across more than 40 transactions and has recovered over ₹13,000 crore to date, including completed exits in 21 deals.
Recent exits include names like Kohinoor Square, Sanghi Cements, and Viceroy Hotel Bangalore.
«We witnessed strong interest from large global institutional investors as well as large Indian family offices and ultra UNIs,» said Amit Agarwal, president and head of private credit at Edelweiss. «Special situation deals are very attractive in the current Indian context as secondary sales of loans continue to be strong even as most underlying assets are operating well but need solutions to reach sustainable debt levels.»
Recent exits included Ind Swift
