Private equity entity Sanaka Capital will invest ₹525 crore ($75 million) in Edelweiss Global Investment Advisors (EGIA), the group’s investment advisory business, which includes wealth & capital markets, asset management and asset reconstruction.
According to a release by the financial services company, Sanaka Growth SPV I Ltd. has committed to invest approximately $44 million (₹308 crore) in EGIA, while talks are on for a further investment of approximately $31 million (₹217 crore) in the business.
Incidentally, the proposed investments by Sanaka Capital follows that of the U.S.-based Kora Management and furthers the third and final process for the investment advisory 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, stated the release.
Further, each business will have its own set of investors, a ring-fenced capital base, and an independent board. The Credit and Life Insurance businesses have already established long-term partnerships, with a strategic investment of $250 million by Caisse de depot et placement du Quebec in the former and Tokio Marine’s 49% holding in the latter.
