Exclusive: Edelweiss’s Indian infra fund eyes $350m Q1 first close

The vehicle has already secured $75m of commitments, with the manager expecting domestic LPs to contribute 40% of its $1bn target.

India’s Edelweiss Alternative Asset Advisors is looking to raise between $200 million and $350 million for the first close of its debut infrastructure vehicle – Edelweiss Infrastructure Yield Plus – by the end of this quarter.

“We are looking to raise between $750 million and $1 billion, which is the ideal fund size for us, and we have already raised $75 million of commitments,” said Nitin Jain, chief executive of Edelweiss’s global wealth and asset management business, adding that the firm has just officially launched the fund and started marketing it this month.

“We are hoping to reach a first close on between $200 million and $350 million by end of this quarter,” he added. He also noted that this is the first infrastructure fund for Edelweiss targeting both domestic and international investors and is confident domestic LPs will commit at least 40 percent of the capital.

Edelweiss said the fund will invest in operating infrastructure assets in the transport, renewables and transmission sectors in India. The fund aims to generate mid-teens returns, including regular annual cash distribution.

Subahoo Chordia, who has 18 years’ experience of infrastructure investment and was most recently head of infrastructure, industrials and real estate at Edelweiss, will lead the fund. Kunnasagaran Chinniah, former global head of infrastructure at GIC, is on the investment committee of the fund to contribute a global view, while the advisory committee comprises retired members of the senior management teams of large Indian companies, to bring in domestic experience.

“Globally, infrastructure is recognised as a sustainable asset class and a desirable alternative to volatile equity markets and low-yielding fixed-income investments,” said Jain.

“This fund opens up opportunities for domestic as well as foreign investors in a unified structure. Our in-depth understanding of the space over the past 10 years has helped us build a significant track record in managing exits of infrastructure companies through secondary sale, M&A, IPO, infrastructure trusts etc… They have executive transactions over $4 billion,” he added.

Edelweiss’s global wealth and asset management arm has more than $20 billion of assets under management, with experience of investing across equities, debt and alternatives.

– With additional reporting by Carmela Mendoza