Edelweiss unit raises Rs 525 crore from Sanaka Capital, others

Mumbai: Financial Services conglomerate Edelweiss Group today said that private equity firm Sanaka Capital along with co-investors will be investing up to $75 million (Rs 525 crore) in Edelweiss Global Investment Advisors (EGIA), the group’s Investment Advisory business.

Sanaka Capital’s special purpose vehicle has committed to invest approximately $44 million (Rs 308 crore) in EGIA, while talks are on for a further investment of approximately Rs $31 million Rs (217 crore) in the business.

The proposed investment in the business is subject to regulatory approvals, the company said in a note.


It pointed out that the partnerships are in line with the overall strategic growth plan initiated in 2017 by Edelweiss Group, to separate its three businesses - Credit, Investment Advisory and Insurance - into distinct entities, based on synergistic business needs, aligned consumer segments and complementary platforms

Each business group will have its own set of investors, a ring-fenced capital base, and an independent board, the release said.

The proposed investments by Sanaka Capital follows that of US-based Kora Management and furthers the third and final process for the Investment Advisory business.

The businesses housed under EGIA include wealth & capital markets, asset management and asset reconstruction.

The investment advisory business is among the top three wealth management companies, with assets under advice of $ 15.4 billion, the release said.