Edelweiss Wealth Management has launched a close-ended Category-II Alternate Investment Fund, Edelweiss Crossover Yield Opportunities Fund.

The venture-focused debt fund combines equity-like returns with debt risks and regular cash flows. Edelweiss targets to raise ₹3,000 crore (including the green-shoe option).

The product is being launched when a funding slowdown has gripped the private capital markets, making promoters more sensitive to equity dilution while having to ensure capital sufficiency for growth.

It will aim to provide investors with stable quarterly coupon distributions, facilitating liquidity and offering predictability of returns. The fund will aim to generate additional returns by monetising the equity optionality built into the product. It will have a diversified portfolio by investing across growth stages starting from Series A and will be sector-agnostic.

Anshu Kapoor, President, Edelweiss Wealth Management, said the fund would participate in a thriving venture debt ecosystem, which is expected to become a $5 billion opportunity in the next few years.

It will home-grown high-growth enterprises with home-grown capital, he said.

Bharat Bond

Meanwhile, the Bharat Bond ETFs managed by Edelweiss Asset Management has crossed ₹50,000 crore AUM in 2.5 years.

The fund house has launched five tranches of Bharat Bond ETFs.

Tuhin Kanta Pandey, Secretary of DIPAM, Ministry of Finance, said the success of Bharat Bond ETFs is a testament to the financial strength of PSUs and the trust they inspire in investors.

Radhika Gupta, Managing Director, Edelweiss Asset Management, said the fund house has brought India’s first corporate bond ETF and created a product category from the ground up. In the process, Edelweiss has managed to get investors a unique investment offering, she said.

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