Edelweiss launches AIF focused on IPO-bound companies

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The Edelweiss Group has launched an alternative investment fund that will invest in companies looking to go public in the near-term and is targetting to raise a corpus of Rs 1,750 crore for the fund.

The Edelweiss Crossover Opportunities Fund comes at a time when the IPO market has gathered pace and companies from a wide range of sectors intend to go public in the near-term, opening up new investment opportunities.

"The fund will aim to invest in companies that are at a 'crossover' point of going from unlisted to listed in the near term," Edelweiss said in a statement today.

"The strategy is to invest in companies that provide such crossover opportunities having visibility of accessing public markets," it added. Pranav Parikh, who leads the investment team of the fund, said the investment philosophy is centered on picking fundamentally strong companies based on secular growth themes that transcend market cycles, and observing high discipline in doing so.

"The fund also endeavours to provide solutions to capital structure situations that companies tend to face in their preparation for accessing public markets in near future".

According to Edelweiss global wealth and asset management chief executive Nitin Jain, the IPO market has been very strong in the past few years, with this fiscal year already seeing record offerings of over Rs 60,000 crore. "The pipeline for the next few quarters also looks strong," he noted.