India (Commonwealth Union)_Global investors, including significant insurance firms, pension funds, HNIs, and family offices from India, have made commitments to the fund. With a green shoe option of $500 million, the fund hopes to raise $1 billion. With the proceeds from its third Special Situations Fund, Edelweiss Alternative Asset Advisors has raised around $425 million (Rs 3,400 crore) (ISAF III). The fund invests in circumstances where asset resolution calls for money and specialized knowledge, with a concentration on enterprises with a lot of assets and a good chance of turning things around.
According to a BSE filing by Edelweiss, it has commitments from high-net-worth individuals, pension funds, significant insurance firms, and Indian family offices among other international investors. A green-shoe option of $500 million is included in the fund’s $1 billion fundraising goal. In two exceptional scenario chances, ISAF III has invested more than Rs 1,000 crore, and it has a robust pipeline of prospects in this area.
According to Amit Agarwal, head of special circumstances strategy, the fund helps businesses searching for specialized financing alternatives to turn around their financial difficulties. Financial institutions seeking to sell or settle their portfolio assets are helped by the fund. As a significant portion of fund investments are made in the form of covenant-heavy credit instruments, we think investors in special situation strategy may achieve high returns comparable to equities while minimizing downside risk, according to Amit Agarwal, head of special circumstances strategy.
Investors in the special circumstance strategy can achieve high returns equivalent to equities while reducing downside risk since a substantial portion of fund assets are made in the form of covenant-heavy credit instruments. After raising capital in 2018, the Special Situations Strategy Fund (Series II) invested more than Rs 10,500 crore across investments and exited various transactions to realize more than Rs 9,500 crore from portfolio firms.
