India’s Sanaka Capital invests $44m in Edelweiss

The proposed investment - part of a funding round that could reach $75 million - would go towards the company’s investment advisory business Edelweiss Global Investment Advisors (EGIA). This would build on a recent investment in EGIA by US-based Kora Management that reportedly amounted to as much as $125 million.

EGIA’s activities cover wealth and capital markets, asset management, private debt, and asset reconstruction. The business claims to have “market dominance in each of its segments,” with about $15.4 billion of assets under advice in total. Development plans include expansions into new geographies.

“We are extremely impressed with the drive, hunger, resourcefulness, enterprise and unimpeachable integrity of the promoters and the professional leadership team at EGIA and are confident that they are well equipped to build world-class businesses, even in challenging business environments,” Narayanan said in a statement. “We believe that EGIA with its focus on innovation and efficient execution would be a key beneficiary of the paradigm change in India, as savings shift towards financial products.”

The deal is part of a broader growth program at EGIA’s parent company that has resulted in a number of recent investments. These include a INR18 billion ($250 million) commitment by Caisse de depot et placement du Quebec to Edelweiss’ credit unit, and the acquisition of a 49% stake in the Edelweiss life insurance division by Tokio Marine. In February, Allianz Group invested more than $200 million in the company’s private debt platform, Edelweiss Alternative Asset Advisors.

A month earlier, the conglomerate’s alternative investment arm closed its second fund with INR92 billion in commitments aimed at Indian stressed assets. The vehicle will invest in non-performing assets with established infrastructure, viable business models and the potential to generate cash flows.

Sanaka targets growth-stage opportunities primarily in middle-market companies that are incorporated or have a material portion of their operations in India. According to AVCJ Research, the firm reached a first close of $100 million in August last year for its maiden fund, with an anchor contribution from Swiss investment group Woodman Asset Management. The vehicle, which is targeting $300 million, will make both control and minority investments.

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• Topics
• South Asia
• Financials
• Advisory
• Expansion
• India
• Edelwiess Alternative Asset Advisors
• Financial Services
• Sanaka Capital