India’s Edelweiss sets up last-mile real estate fund with S Korea’s Meritz

A cyclist rides across a clearing near residential buildings at an Amrapali Group development in Noida, Uttar Pradesh, India, on Saturday, Jan. 20. 2018. Photographer: Anindito Mukherjee/Bloomberg

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.

This article was first published on livemint.com.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.