Carlyle Group said to eye stake in Nido Home Finance

If the transaction goes ahead, Carlyle will join the likes of Blackstone Inc. and Sumitomo Mitsui Financial Group Inc., in placing bets on India’s booming housing finance sector in recent years

Carlyle Group Inc. is in talks to buy a majority stake in an Indian home mortgage firm as it seeks to step up investments in the local financial services sector, according to people familiar with the matter.

Carlyle is targeting an initial funding of $300 million in Mumbai-based Nido Home Finance Ltd., owned by Edelweiss Financial Services Ltd., the people said, asking to remain anonymous as the discussions are private. Negotiations are ongoing and a deal hasn’t been finalized, the people said.

If the transaction goes ahead, Carlyle will join the likes of Blackstone Inc. and Sumitomo Mitsui Financial Group Inc., in placing bets on India’s booming housing finance sector in recent years. Carlyle sold its decade-old investment in PNB Housing Finance, and in Yes Bank Ltd., earlier this year.

Edelweiss did not respond to a request for comment, while Carlye declined to comment. Edelweiss was keen to bring in a private equity fund to help grow its housing finance business and was in early talks with potential investors, Group Chairman Rashesh Shah said during an earnings call in November.

Carlyle expects to write bigger checks in India as it looks to take majority stakes in companies and build platforms to consolidate businesses, the firm’s India head, Amit Jain, said earlier this year. The firm has invested about $8 billion in India in its 25-year history in the country