US firm Kora Management to invest up to $125m in Edelweiss Group

A packet of former U.S. President Abraham Lincoln five-dollar bill currency is inspected at the Bureau of Engraving and Printing in Washington March 26, 2015. REUTERS/Gary Cameron/File Photo

Financial services conglomerate Edelweiss Group on Wednesday said that US-based Kora Management will invest up to $125 million (around Rs875 crore) in the group.

Kora Management, an investment firm focused on financial and technology sectors across emerging markets, is already an investor in Edelweiss. The firm has committed to invest $75 million (about Rs525 crore) in Edelweiss’ advisory business – Edelweiss Global Investment Advisors (EGIA) – subject to structuring-related milestones, Edelweiss said in a statement.

EGIA includes the businesses of asset reconstruction, wealth and asset management and institutional client group, together contributing to nearly 50 per cent of the group’s profit.

“Our customers will benefit immensely from Kora’s acumen in technology and financial services across emerging markets, and their investment will help us scale our businesses in a competitive market environment,” Rashesh Shah, chairman and CEO of Edelweiss Group, said.

The proposed investment in the business is subject to customary regulatory approvals.

In addition, Kora plans to make a further investment of $50 million (Rs 350 crores) in Edelweiss, the timing and structuring of which is being finalised, the statement added.

The Edelweiss Group is also in talks with other investors to join this first external investment round in EGIA, which will be limited to $200 million (approx Rs1,400 crore) in total, the statement said.

Kora’s founder and Chief Investment Officer Nitin Saigal said, “Over the years, the group has successfully built a diversified financial services franchise in India, with multiple scalable platforms. Today, EGIA is well-positioned in asset and wealth management and distressed debt, two exciting sub-segments in Indian financial services, with the potential to grow multi-fold in the years to come.”