Edelweiss launches Rs 5000 crore fund to tap pre-IPO, late-stage deals

The fund will focus on late-stage PE and Pre-IPO investments

Edelweiss Wealth Management on Tuesday said it has launched a private equity (PE) fund to tap pre-IPO and late-stage investment opportunities with a targeted corpus of Rs 5,000 crore.
 
The fund is a third in the series themed Edelweiss Crossover Opportunities, which has so far raised Rs 2,200 crore.
 
Pranav Parikh, managing partner & head, PE at Edelweiss Wealth Management, said: “The phase of 2-3 years before the IPO and 2-3 years after the listing represents one of the best phases of growth and makes for a very attractive investment strategy. Crossover III will focus on this phase of high growth of future-ready businesses and partner them as they transform into lasting publicly-listed franchises.”
 
The money will be raised from domestic institutions and high-networth individuals (HNIs), he said, adding that the fund would be closed in six to 12 months. Parikh said Edelweiss is looking at areas such as consumer internet, financial technology, affordable housing, etc. to invest.
 
The allocation on the upper end can be up to 15 per cent in late-stage PE deals and will be relatively lower in close-to-IPO investments, he said. The late-stage PE space has of late gained momentum in India.

 
The first fund in the series was launched in November 2017, while the second one came a year later.
 
Nitin Jain, MD & CEO, Edelweiss Wealth Management, said: “With a very strong track record in its previous tranches, the Edelweiss Crossover strategy adopts a partnership approach with its portfolio companies where throughout the investment period, the fund team engages deeply with the company’s management to create a positive impact on their performance, thereby maximising returns for our investors.”
 
Edelweiss Wealth Management has assets under advisory of $19 billion serving 670,000 affluent and HNIs and 2,400 of the country’s wealthiest families.

According to Edelweiss, net PE investments in the county have doubled between 2016 and 2020 to over $13 billion over the previous five-year period.