MUMBAI: EdelweissNSE -0.07 % Financial Services has raised Rs 2,000 crore and made a first close of its maiden fund to buy out infrastructure assets in India as rapid urbanisation and push for sustainable development provide room to financial investors.
The fund, which was launched in January this year, collected in a big way from domestic investors such as ultra HNIs, family offices and domestic financial institutions.
Edelweiss, though initially targeted to raise Rs 2,000 crore with an additional greenshoe option of Rs 4,500 crore, has completed the first tranche in record time, its top official told ET.
“This reflects the shift in mindset of Indian investors towards high quality income generating alternative and long-term products. The better-than-expected participation from domestic financial institutions and HNIs also points that people are preferring institutionalised long-term investment vehicles rather than making bets on gold or real estate,” said Nitin Jain, CEO, Global Wealth & Asset Management, Edelweiss Group.
The fund — Edelweiss Infrastructure Yield Plus — is registered with Securities and Exchange Board of India (Sebi) as a Category I Alternate Investment Fund for investing in infrastructure sector in the target markets in India. “We aim to buy out controlling stakes in operational infrastructure assets, including roads, transmission lines and renewable power projects. Infrastructure developers are looking to monetise operating assets to reduce stress on over-leveraged balance sheet and finance their greenfield/under-construction projects, hence we believe there are great opportunities in the market for this fund,” Jain said. Sebi-registered AIFs have raised Rs 7,524.09 crore in 2017 for investing in infrastructure space, up 11 per cent from the amount raised in the corresponding period a year ago.