India's Edelweiss targets $686m for pre-IPO fund
Edelweiss Wealth Management (EWM) is looking to raise INR50 billion ($686 million) for its third fund focusing on late-stage growth and pre-IPO investments in India.
The wealth manager – in which PAG acquired a majority stake last year – claims to have raised an aggregate INR22 billion for previous funds in the series. A debut vehicle of INR17.5 billion closed in 2017, AVCJ Research’s records show. VCCircle reported in 2018 that EWM was targeting INR10-15 billion for a successor fund.
Edelweiss Crossover Opportunities Fund - Series III will support high-quality entrepreneurs and management teams as they transition from private to public market ownership. The goal is to broaden investor access to late-stage private deals and secure meaningful allocations in the IPOs. Edelweiss claims this strategy has delivered consistent returns despite market volatility.
“We are witnessing the emergence of new sectors and novel business models, presenting new market opportunities. It is very exciting to see the confidence among Indian entrepreneurs today as they aspire to build the next generation of world-class companies,” said Pranav Parikh, head of private equity at EWM, in a statement.
He added that the 2-3 years immediately before an IPO and the 2-3 years after it represent some of the most attractive growth phases for companies.
Ten private equity-backed Indian companies raised $4.1 billion through domestic IPOs last year, with investors making partial exits amounting to $1.6 billion. The fundraising total is the second-largest on record – after 2017 – while the exit amount represents a record high.
Between 2015 and 2018, there was an annual average of 31 offerings by businesses with financial sponsors. Volume dropped off significantly in 2019 – eight IPOs raised $606 million – and it has yet to rebound, even as mega offerings proliferate. The 2020 total was buoyed by SBI Card alone raising $1.3 billion, allowing The Carlyle Group to realize proceeds of $847 million.
EWM claims to provide wealth management services to more than 2,400 of India’s wealthiest families as well as around 670,000 high net-worth individuals and other affluent clients. Assets under advisory totaled INR1.27 trillion as of June 2020, up from INR185 billion in 2015.
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