Edelweiss Alternatives Raises Rs 8000 Cr In Special Situations Fund

Edelweiss Alternatives has raised $1 billion (INR 8000 crore) for their third generation of special situations strategy.

The company said that it has invested in deals excess of $400 million (INR 3000 crore) from its third-generation fund, representing over 40 per cent of the total amount raised to date. These investments spread across various sectors, including Roads, Steel, Paper, Hotel, Leased offices, and Real Estate.  

The Special Situations strategy has an active pipeline of deals valued at nearly $480 million (INR 4000 crore) across a diverse range of opportunities, maintaining its focus on attractive risk-adjusted returns.  

Venkat Ramaswamy, Vice Chairman, Edelweiss Group said, "We expect the market to grow from its current size of $14 billion to $100 billion over the next decade as India doubles its GDP to $7 trillion. As a brand, we will continue to strive to deliver not only superior risk-adjusted returns across our businesses but also focus on providing continuous and consistent yield/income to our clients every year and creating value for all stakeholders while fostering job creation and protection.” 

The second-generation special situation fund, which deployed over $1.2 billion (INR 10000 crore) across 40+ transactions, has further recovered more than $1.5 billion (INR 13000 crore) to date. This success includes exits in 21 deals, and it showcases the strategy’s value creation, as it revitalizes assets, improves profitability, and saves jobs. 

Amit Agarwal, President and Head of Private Credit, Edelweiss Alternatives said, “We have witnessed increased operational cash flows, refinancing, secondary debt sales, stake sales, strategic sales of companies/assets, non-core asset sales, and IBC resolutions across our diversified portfolio. 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 require solutions to reach sustainable debt levels. We are very encouraged by the exits and operating turnarounds achieved in our investee companies. This has showcased our ability to find various ways of restructuring and ultimately exiting our investments, leading to continuous cash flow for our existing clients.”