MC EXCLUSIVE Edelweiss Alternatives to raise third infra fund of over $1 billion amid rising investor appetite

EAAA India Alternatives raising its third infra fund

• EAAA India Alternatives aims to raise $1-1.2B for new infra fund
• Third fund targets renewables, roads, and digital infrastructure
• EAAA launching $300M energy transition fund

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EAAA India Alternatives Limited, formerly Edelweiss Alternative Asset Advisors, has opened talks with global and domestic investors to raise its third flagship infrastructure fund, sources have told Moneycontrol.

EAAA is likely to raise around $1 billion to $1.2 billion for the Yield Plus Fund, they said, adding the asset manager may raise even more money if it sees strong demand.

“The infrastructure strategy has been a very successful one for EAAA. The third fund will double down on this successful strategy of acquiring operating assets in the renewables, roads and transmission sectors — assets that generate stable long term yields,” one of the people cited above said.

“The third fund may expand this strategy to newer areas such as digital infrastructure including data centres.”

Apart from the third Yield Plus Fund, EAAA is also raising an energy transition fund, which will invest in renewable energy, energy storage, electric mobility, and other green infrastructure assets.

In October, EAAA announced a $60-million commitment from the European Investment Bank for its India Energy Transition Fund, which is targeting a corpus of $300 million.

An email to EAAA Alternatives had not elicited a response by the time of publication.

Infra, energy in demand

Infrastructure and energy have emerged as an attractive asset class, especially for domestic investors, due to their ability to generate high yields that are stable and long term.

Moneycontrol reported on February 25 that another infrastructure focused fund manager Eversource Capital is in talks to raise its second Green Growth Equity Fund. It is looking to raise around $750 million for its second fund.

Also Read: EAAA India Alternatives files draft papers with SEBI for Rs 1,500-crore IPO

Yield Plus Fund

EAAA India Alternatives’ infrastructure business sits within its broader real assets platform, which focuses on investing in income-generating assets across sectors such as renewable energy, roads, transmission infrastructure and commercial real estate.

The strategy is centred on acquiring and operating assets rather than taking on greenfield development risk, allowing the platform to generate stable, predictable cash flows through toll revenues, power purchase agreements and lease income.

The firm typically follows a control-oriented approach, combining acquisition with active asset management and operational optimisation to enhance yields. This positions its infrastructure strategy closer to yield platforms and InvIT-like structures, catering primarily to global pension funds, insurance companies, institutional investors and family offices seeking long-duration, inflation-linked returns.

Within the alternatives spectrum, real assets are positioned as relatively lower-risk compared to private equity, offering steadier income streams but with lower liquidity.

The EAAA infrastructure platform has two InvITs, Anzen India Energy Yield Plus Trust and Citius Transnet Investment Trust.

The Anzen trust has been set up to house the transmission and renewable energy assets acquired by EAAA, while Citius is for road assets.

Citius, which filed draft papers for a public offer in December, is planning to raise Rs 1,340 crore from investors.