Mumbai (Maharashtra) [India], Nov 13: Private equity platform Sanaka Capital along with co-investors will invest up to Rs 525 crore into Edelweiss Global Investment Advisors (EGIA), the group’s investment advisory business.
Founded by Shankar Narayanan, former Managing Director and Co-Head of the Asia growth capital team of Carlyle, Sanaka Growth SPV I Ltd (part of Sanaka Capital) has committed to invest about Rs 308 crore) in EGIA, while talks are on for a further investment of Rs 217 crore in the business. The partnerships are in line with the overall strategic growth plan initiated in 2017 by Edelweiss Group to separate its three businesses — credit, investment advisory and insurance — into distinct entities based on synergistic business needs, aligned consumer segments and complementary platforms.
Each business group will have its own set of investors, a ring-fenced capital base and an independent board. “Financial services in India have gained critical traction in recent years, thanks to a young workforce that is financially and digitally savvier, and a reformative government that wants to make household savings more productive and remunerative,” said Chairman and CEO of Edelweiss Group Rashesh Shah.
“We look forward to working with the Sanaka team, to capitalise on emerging opportunities and take our investment advisory business to the next level,” he said in a statement. Recently, Edelweiss had announced a partnership with South Korea based Meritz Financial Group for the completion of its financing platform.
It has also joined hands with large global institutional investors like CDPQ, one of North America’s largest pension funds for the credit business, Allianz Investment Management, part of Allianz Group for the private debt platform and AJ Gallagher for the insurance advisory business.