Edelweiss Wealth Management plans to raise USD 1 bn via its Pre-IPO and late stage, Edelweiss Crossover Opportunities fund
Edelweiss is one of the pioneers in the Pre-IPO/ Late-stage Private Equity space with two of its earlier offerings in the Crossover series.
Edelweiss Wealth Management (EWM) has announced plans to raise USD 1 bn (INR 7500 Cr) via its pre-IPO and late-stage Private Equity (PE) focused series of funds. Series III, launched in March earlier this year, recently announced its final close with commitments of over INR 1500 Cr (USD 200 mn). With this, the Crossover series have raised a total of INR 3700 cr (USD 500 mn) across three funds. The team has now launched Crossover Series III A to raise atleast another INR 1500 Cr (USD 200 mn) in this strategy.
The Crossover strategy will continue with the launch of a series of funds over the next 12-18 months to achieve its stated target of USD 1bn – one of the key initial players in the late-stage PE space in India, since the launch of Crossover series of funds in 2017.
Crossover III A will continue to build on the platform’s experience, expertise, and capabilities to provide flexible and bespoke capital solutions to Indian investors with this fund.
The fund opens access to private investments, which usually are unavailable to most Indian investors – access to existing and emerging leaders, including technology businesses like Fintech, Edtech, Healthtech, Digital media and digital commerce. The fund enables investors to capitalize on structural growth trends early on with reasonable exit time horizons.
Crossover I and II launched in Nov-17 and Sep-18, have built a portfolio of home-grown marquee names like NSE, Sapphire Foods, Affle, Indiamart, CAMS, Amber, Medplus and other industry leaders across sectors. The funds have thrived through two crises and delivered benchmark beating returns of 16.2% and 28.7%, respectively, since inception. Additionally, Crossover I has distributed over 60% of the capital raised, having successfully exited part of its portfolio.
This strategy has stood the test of time through recent market crises. It has done quite well in delivering consistent returns and lower than market drawdowns throughout this period of extreme volatility.
Mr. Anshu Kapoor, President & Head, Investment Management, Edelweiss Wealth Management said, “The private market has largely been inaccessible to many of our Indian HNI and family office customers who are looking to invest in fundamentally strong companies with proven business models. At the same time, many of these companies preparing to go public need to raise funds to deleverage their balance sheet or make up for PE investor exits. Crossover as a strategy aims to bridge this gap. We provide quality Indian capital to fund home-grown companies with extensive domestic and global ambitions on their way to IPO. For an investor, the strategy offers attractive entry valuations with an imminent exit via public markets, thereby mitigating the risk involved in unlisted securities".
Mr. Pranav Parikh, Managing Partner, PE, Edelweiss Wealth Management said, “ It’s truly an exciting time for entrepreneurial activity in this country with emergence of high quality new age businesses that are defining the new paradigm. At Crossover, we are proud to align and partner with such current and emerging leaders as they build sustainable large entreprises. Our ambition and scale of our funds mirrors this opportutnity in front of us and we are committed to deliver high risk-adjusted returns for our investors”.
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