Edelweiss Group to acquire two funds from Milestone Capital

Sanjay Krishna | Myequity news | Date : 13-08-2018 11:15:00 IST

Edelweiss Alternative Asset Advisors Limited (EAAA) a subordinate of Edelweiss Financial Services Limited announced that it will be acquiring two Funds of Milestone Capital Advisors Limited – Milestone Opportunities Fund 10 and Milestone Commercial Advantage Fund. Both the funds are registered under the SEBI Registered Category II, Alternate Investment Funds with a combined AUM of over INR 150 crores. Edelweiss is also absorbing the high quality investment team of these funds who bring over a decade of rich experience in Commercial Real Estate (CRE). The transaction is subject to requisite regulatory approvals.

EAAA is focusing on the credit opportunities in India catering to global and domestic investors across illiquid strategies including infrastructure, distressed assets, collateralized credit and real estate.

EAAA have a successful track record in residential real estate investing, EAAA’s acquisition of Milestone’s Commercial Real Estate (CRE) Fund is part of the group’s strategy to further strengthen its yielding asset platform while widening the range of investment opportunities to its clients.

Speaking on the occasion, Mr. Nitin Jain, CEO, Global Wealth & Asset Management Business at Edelweiss said, “There is a growing demand from investors for high yielding long term assets and we believe this is a large structural opportunity. This acquisition will also provide us a seamless entry into the CRE space adjacent to our current offerings in Residential Real Estate.” He further added, “We welcome the highly qualified and experienced funds team who will now have access to the Edelweiss platform and together we will add significant depth to our yielding asset strategy.”

Mr. Venkat Ramaswamy, Executive Director & Co-Head, Global Wealth & Asset Management Business at Edelweiss provided a global perspective and said, “Over the last 8-10 months the industry has witnessed a spate of transactions clearly indicating a turnaround in the commercial real estate space. We also continue to receive keen interest from international investors including large global pension funds and insurance companies aggressively looking at acquiring grade-A commercial real assets for long term investment. This acquisition will allow us to partner with global institutions looking at India as a long term investment destination.” EAAA recently garnered its base offering size of INR 2000 crores for its Edelweiss Infrastructure Yield plus Fund (Yield Plus or Fund) offering good quality risk-adjusted yield ascertaining a clearly felt need for long term yielding products.

Ms. Rubi Arya, Executive Vice Chairman, Milestone Capital Advisors said, “Upholding Investors’ interest has been the guiding principle of Milestone Group. We are convinced of Edelweiss’ commitment to this business, and believe that with this acquisition, the Interest of the investors shall continue to be served given their excellent track record.”

Milestone is a privately held alternative investment advisory firm and is India’s first independent real estate private equity investment management platform. It has raised $600mn+ (INR 3,900cr) till date Across 11 funds and is highly differentiated with a strong track record of performance and growth. Milestone has a long standing relationship with a stable investor base comprising some of the largest players in the Indian PE space.

About Edelweiss Financial Services :

The Edelweiss Group is one of India's leading diversified financial services company providing a broad range of financial products and services to a substantial and diversified client base that includes corporations, institutions and individuals. Edelweiss's products and services span multiple asset classes and consumer segments across domestic and global geographies. Its businesses are broadly divided into Credit Business (Wholesale and Retail Mortgages, SME and Business Loans, Agri and Rural Finance, Structured Collateralised Credit and Distressed Credit), Franchise and Advisory Business (Wealth Management, Asset Management and Capital Markets) and Insurance (life and general insurance). Edelweiss has an asset base of ~INR 61,800 crores as on 30th June 2018.The Group had a Revenue of INR 8,623 crores and PAT of INR 890 crores for FY 18. Its consistent performance is evidenced by a consolidated PAT CAGR of 38% over last 29 quarters. The group’s research driven approach and proven history of innovation has enabled it to foster strong relationships across all client segments. The group has sizeable presence in large retail segment through its businesses such as Life Insurance, Housing Finance, Mutual Fund and Retail Financial Markets. Together with strong network of Sub-Brokers and Authorized Persons, Edelweiss group has presence across all major cities in India.

More from Myequity