Financial services-focused Edelweiss group on Tuesday said it has launched the first fund under its last-mile real estate financing platform with a target corpus of $425 million, in partnership with South Korea’s financial services conglomerate Meritz Financial Group.
The platform will house multiple funds to buyout existing housing loans and provide financing for completion of residential projects. The funds within the platform will be managed by Edelweiss’ Alternative Asset Management business, Edelweiss said in a statement.
The platform is targeting to raise an overall amount of $1 billion, primarily from similar international institutional investors, over the next 12 months, the statement said.
“We are confident that this platform will expedite the delivery of finished homes to the Indian market, by channelling patient capital to sound projects," said Rashesh Shah, chairman and chief executive of Edelweiss group.
“A thriving real estate sector is important for the economic well-being of India, especially for the jobs it can directly generate, and for the many small businesses that thrive alongside it," he added.
This marks the first investment in the Indian residential real estate sector for Seoul-based conglomerate Meritz Financial Group.
In another development, Edelweiss said growth-focused private equity platform Sanaka Capital, along with co-investors, is looking to invest $75 million (about ₹525 crore) into Edelweiss Global Investment Advisors (EGIA), which comprises wealth and capital markets, asset management and asset reconstruction.
EGIA is among the top three wealth management companies, with assets under advice of approximately $15.4 billion, the statement said.
Sanaka Capital has committed to invest about $44 million in EGIA. Sanaka was founded by Shankar Narayanan, former managing director and co-head of the Asia growth capital team of private equity firm Carlyle.
The proposed investment by Sanaka Capital and other investors, follows a $75 million (around ₹525 crore) investment from US-based Kora Management in August.
These partnerships form part of the group’s overall growth strategy that it had embarked on two years ago.
In 2017, Edelweiss separated its three businesses—credit, investment advisory and insurance into separate entities.
For the credit business, the firm partnered with Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ), which invested $250 million into the business.
Its life insurance company partnered with Japanese life insurer, Tokio Marine, which holds 49% in Edelweiss Tokio Life Insurance.