To raise Rs 3,000 crore, Edelweiss Wealth Management (EWM) has launched the Edelweiss Crossover Yield Opportunities Vehicle (ECYOF), a venture debt fund. PAG, an investor from Asia, supports EWM.
The Alternate Investment Fund (AIF). It presents the idea of making loan investments in growing businesses that generate returns akin to those of equity but with the risks and consistent cash flow of debt.
“The fund is being launched when a funding slowdown has gripped the private capital markets, making founders and promoters more sensitive to equity dilution while having to ensure capital sufficiency for growth. ECYOF is a much-needed alternative that allows venture/private equity-backed high-growth companies to raise additional capital to augment equity financing and continue their growth trajectory,” said in a statement by Edelweiss.
The fund will be managed by Pranav Parikh, CFA, Managing Partner and Head of Private Equity has experience of 25 years and Gaurav Gairola, Senior Investment Director with 19 years of experience. They also have significant exposure to credit strategies.
Edelweiss New Fund to target emerging startups
“With the launch of this fund, we extend our offering to help emerging start-ups and enterprises scale with a debt offering apart from our industry-leading equity funds…We will bring a full set of unmatched value-added services to our investee companies. These include growth capital solutions of debt and equity, ESOP financing for founders and management teams, treasury and forex expertise, as well as the ability to leverage our strong wealth relationships..,” said Pranav Parikh, Managing Partner & Head, Private Equity, Edelweiss Wealth Management.
