Financial services major Edelweiss new fund eyes ₹13,500 crore corpus

To provide finance to units in manufacturing, auto and pharma, among others

EAAA Alternatives, a unit of financial services major Edelweiss group, is planning to raise up to $1.5 billion (around ₹13,500 crore) for medium-long term investments in sectors like industrial products, manufacturing, automobiles, chemicals and pharma.

 

This is the first time the proposed fund — Edelweiss Special Opportunities Fund IV (ESOF IV) — is tapping the domestic market along with global investors.

 

EAAA Alternatives has assets under management (AUM) of over ₹65,000 crore as of September 2025.

 

Amit Agarwal, chief executive officer (CEO), EAAA Alternatives, told Business Standard that the third fund has invested in corporate credit of large companies. It has already exited 12 of the 17 investments made within five years.

 

The platform views private credit in India as a structural opportunity which will continue to grow over time.

 

The third fund has regularly returned capital to its investors reaching nearly full exit now while tracking gross returns of over 18 per cent.

 

The proposed fund, the fourth in the series, aims to provide flexible financing to Indian corporates or sponsors that are relatively underserved by traditional credit providers.

 

Its plan is for a target corpus of $1 billion with a green shoe option of another $0.5 billion, investment banking sources said.

 

The new fund with an end-to-end tenor of seven years aims to build a well-diversified portfolio of 15-17 investments, targeting an average deal size of ₹450–500 crore. It expects to generate regular cash flows over the period of the fund life through interest and principal repayments from underlying portfolio companies, bankers said.

 

Agarwal said investments are underwritten on three core pillars — counterparty, cash flows, and collaterals.

 

The fund assesses the counterparty’s governance and repayment behaviour, evaluates current and forward-looking cash flow visibility, and the strength of fully collateralised and covenanted structures.

 

ESOF IV has seen interest from domestic and global institutional investors, including insurance companies, pension funds as well as family offices, high net worth individuals (HNIs) and ultra HNIs.

 

EAAA has more than 4,000 client relationships across institutional investors and family offices.