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Edelweiss Wealth Management has launched another series of crossover fund to raise at least ₹1,500 crore ($200 million). Launched last March, the Crossover series III announced its final close recently with commitment of over ₹1,500 crore. With this, the Crossover series have raised ₹3,700 crore ($500 million) across three funds.
The team has now launched Crossover Series III-A to raise at least another ₹1,500 crore in this strategy, said Edelweiss. The wealth management company will continue to launch crossover series over the 12-18 months till it achieves the stated target to raise $1 billion (₹7,500 crore).
Crossover I and II launched in November 2017 and September 2018, have built a portfolio of home-grown marquee names like NSE, Sapphire Foods, Affle, Indiamart, CAMS, Amber, Medplus and other industry leaders across sectors. The funds have delivered returns of 16 per cent and 29 per cent since inception. Additionally, Crossover-I has distributed over 60 per cent of the capital raised, having successfully exited part of its portfolio.
Also read: Edelweiss Fin Services eyes ₹400 cr via NCD
Anshu Kapoor, President & Head, Investment Management, Edelweiss Wealth Management said the private market has largely been inaccessible to many of Indian HNI and family office customers who are looking to invest in fundamentally strong companies with proven business models.
Mitigating risk in unlisted securities
Incidentally, many of these companies are preparing to go public and need funds to deleverage their balance sheet or make up for PE investor exits. Crossover as a strategy aims to bridge this gap. For an investor, the strategy offers attractive entry valuations with an imminent exit via public markets, thereby mitigating the risk involved in unlisted securities, he said.
Pranav Parikh, Managing Partner, PE, Edelweiss Wealth Management said it is an exciting time for entrepreneurial activity in India with emerging high quality new-age businesses that are defining the new paradigm. The Crossover fund will partner with such emerging leaders as they build sustainable large enterprises, he added.
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