Edelweiss’ arm to get $350 mn from OTPP

Canadian pension fund manager Ontario Teachers’ Pension Plan Board (OTPP) has agreed to invest $350 million ( ₹2,600 crore) in Edelweiss Alternate Asset Advisors (EAAA), the latter said on Wednesday.

The investment pact represents a long-term partnership between OTPP and the alternative investment platform of the Edelweiss Group, which will focus on performing and distressed credit investment opportunities in the Indian market, it added.

“The focus of the platform is on credit and yield products . We have four products under our alternatives platform - performing credit (corporate and real estate) distressed credit and infrastructure yield. We started this platform 10 years ago with our first performing credit fund Edelweiss Special Opportunities Fund, for which we had raised $230 million,” said Venkat Ramaswamy, vice chairman and executive director, Edelweiss Group. “Now, we have around $3.8 billion in assets under management including ESOF III commitments received recently,” he added.

OTPP is the third major global investor to tie up with Edelweiss’ alternatives investment business. Canadian pension fund CDPQ and European insurance giant Allianz are the other investors.

Ramaswamy said EAAA is likely to raise a new fund every year. The announcement follows the recent deal between Edelweiss and PE firm PAG, which infused ₹2,200 crore for a 51% stake in the Group’s wealth management business.