Edelweiss Alternatives raises Rs.8000 crore for Infrastructure Yield Plus II (IYP II)
Edelweiss Alternatives, one of the leading* India focused alternative asset managers, has raised INR 8000 crore for its second generation of Infrastructure Yield Strategy – Infrastructure Yield Plus II (IYP II).
This remarkable achievement comes against the backdrop of strong interest from various investor segments such as global pension funds, domestic and offshore institutions, large family office and UHNIs.
We believe this fund raise is a testament to the vast investment opportunities available in operating infrastructure assets in India and an endorsement to the robustness and expertise of real assets platform of Edelweiss Alternatives.
The fund seeks to invest in assets that are financially stable with a sound legal and regulatory framework and has a long residual life or concession period with credible counterparties. Similarly, the fund looks to enhance the value of these assets through an active asset management approach.
Venkat Ramaswamy, Vice Chairman, Edelweiss Group said, "India’s core infrastructure assets has significant potential to reach ~US$ 2.5 tn in the next 3-4 years, and this offers us an incredible opportunity to scale further. Our infrastructure platform will continue to grow as developers will look to recycle capital for further expansion. We remain committed to contribute to the growth of Indian economy and are grateful to our domestic and global investors for their constant unwavering support. This solidifies our purpose to as we seek to consistently deliver superior risk-adjusted returns across our strategies while focussing on providing consistent yield/income to our investors every year”.
The first generation of Infrastructure Yield Plus (IYP I) has a fund size of around INR 3300 crore and has fully deployed its investible corpus. IYP I has sold the two transmission assets to AnZen InvIT and currently holds 12 solar projects with cumulative capacity of 813 MWp, three annuity road projects and one toll road project. IYP II has signed a binding agreement with L&T and Canada Pension Plan Investment Board (CPPIB) to buy a portfolio of eight road assets and a transmission line, which are valued at INR 6000 crore. We believe this demonstrates the strategy’s capabilities and expertise to build value for its assets.
Subahoo Chordia, President and Head of Real Assets, Edelweiss Alternatives said “The previous performance of IYP I led the existing base of large investors to increase their commitments significantly in the second fund. Our focus on investments and asset management with large in-house operating expertise supported by continuing investments in technology and processes which we believe has helped us to be ahead in the industry. We are grateful for the ongoing trust our clients have placed in us. We have also added several new domestic and offshore investors to this fund, and a significant capital has been raised from domestic investors including institutions and large family offices. The offshore capital has been raised primarily from pension and insurance institutions and we continue to see more interest from them”.
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