This is not a well-known story, so it bears telling. Five years back, in 2013, a global real estate fund decided to shut shop. Its partners, though, decided to stick around. With a plan to raise a Rs 300-crore ($42.8 million) residential fund. Over the next two years, they met investors across New York, Hong Kong, and Singapore, but capital never found its way. They didn’t give up easy. Kept at it for a good two years, before realising that it wouldn’t work out and it was best to shut shop. In 2015, they went back to traditional jobs, managing a fund, whatever was on offer; their entrepreneurial turn scuppered.

It was true back then. It is true today. Raising capital isn’t easy. For you, me, companies, and it’s no different for private equity funds too.

Sample this: According to Preqin, a research firm which collates data on private equity funds, 20 funds have managed to raise $1.7 billion since January this year. Last year alone, Indian general partners (GPs) managed to raise $3.6 billion across 35 funds. General Partners are fund managers who manage capital.

Money isn’t easy to come by. Which is why Edelweiss Financial Services sticks out. Starkly.

Here are all the things that Edelweiss has going for it at the moment:

  • Edelweiss Alternative Asset Advisors Ltd (EAAA), the alternate asset arm of the company has been raising capital across strategies. Its asset under management (AUM) for its alternative assets business stands at Rs 20,100 crore ($2.87 billion) at the end of Q1FY19. This is close to double of what it was at the same time last year—Rs 11,800 crore ($1.68 billion). To be clear, 34% of Edelweiss’ AUM under this business comes from multi-strategy funds and portfolio management services (PMS).
  • Its alternatives funds include residential real estate, commercial real estate, infrastructure yield fund, distressed asset fund, structured debt and a pre-IPO fund. And by the end of September, it is looking to raise further capital in all of its existing funds. It had earlier launched a venture capital fund of Rs 300 crore ($43 million) which was funded by Edelweiss’ balance sheet. Currently, it is not looking to raise any capital under the same.
  • Edelweiss is new to pure play private equity. It launched its first PE fund in 2017—its private investment in public equity (PIPE) fund. A PIPE fund invests in a listed company at an agreed price rather than directly through market transaction. It also launched an infrastructure yield fund in 2018, which has managed to raise $350 million and plans to raise between $750 million-$1 billion under the same.

Now, the curious bit is the creation of a new kind of alternative assets business in India.


Pooja Sarkar

Pooja has been a journalist for about a decade now. She has worked at DNA Money, Business Standard and Mint. In her last assignment, Pooja was a chief correspondent at ET Now. At The Ken, she will write on private equity and the venture capital ecosystem. This, in the context of company strategy. Along with work, she is picking up important life skills these days, like the art of knitting a muffler.

View Full Profile

Available exclusively to subscribers of The Ken India

This story is a part of The Ken India edition. Subscribe. Questions?


Annual Subscription

12-month access to 200+ stories, archive of 800+ stories from our India edition. Plus our premium newsletters, Beyond The First Order and The Nutgraf worth Rs. 99/month or $2/month each for free.

Rs. 2,750


Quarterly Subscription

3-month access to 60+ new stories with 3-months worth of archives from our India edition. Plus our premium newsletters, Beyond The First Order and The Nutgraf worth Rs. 99/month or $2/month each for free.

Rs. 1,750


Single Story

Instant access to this story for a year along with comment privileges.

Rs. 500


Annual Subscription

12-month access to 150+ stories from Southeast Asia.

$ 120


Quarterly Subscription

3-month access to 35+ stories from Southeast Asia.

$ 50


Single Story

Instant access to this story for a year along with comment privileges.

$ 20



What is The Ken?

The Ken is a subscription-only business journalism website and app that provides coverage across two editions - India and Southeast Asia.

What kind of stories do you write?

We publish sharp, original and reported stories on technology, business and healthcare. Our stories are forward-looking, analytical and directional — supported by data, visualisations and infographics.

We use language and narrative that is accessible to even lay readers. And we optimise for quality over quantity, every single time.

What do I get if I subscribe?

For subscribers of the India edition, we publish a new story every weekday, a premium daily newsletter, Beyond The First Order and a weekly newsletter - The Nutgraf.

For subscribers of the Southeast Asia edition, we publish a new story three days a week and a weekly newsletter, Strait Up.

The annual subscription will get you complete, exclusive access to our archive of previously published stories for your edition, along with access to our subscriber-only mobile apps, our premium comment sections, our newsletter archives and several other gifts and benefits.

Do I need to pay separately for your premium newsletters?

Nope. Paid, premium subscribers of The Ken get our newsletters delivered for free.

Does a subscription to the India edition grant me access to Southeast Asia stories? Or vice-versa?

Afraid not. Each edition is separate with its own subscription plan. The India edition publishes stories focused on India. The Southeast Asia edition is focused on Southeast Asia. We may occasionally cross-publish stories from one edition to the other.

Do you offer an all-access joint subscription for both editions?

Not yet. If you’d like to access both editions, you’ll have to purchase two subscriptions separately - one for India and the other for Southeast Asia.

Do you offer any discounts?

No. We have a zero discounts policy.

Is there a free trial I can opt for?

We don’t offer any trials, but you can sign up for a free account which will give you access to the weekly free story, our archive of free stories and summaries of the paid stories. You can stay on the free account as long as you’d like.

Do you offer refunds?

We allow you to sample our journalism for free before signing up, and after you do, we stand by its quality. But we do not offer refunds.

I am facing some trouble purchasing a subscription. What can I do?

Please write to us at [email protected] detailing the error or queries.