Edelweiss Wealth Management targets to raise Rs 1,000 crore for equity-focused AIF

Edelweiss Financial Services | Representative Image.

Edelweiss Wealth Management is targeting to raise Rs 1,000 crore from domestic investors for its maiden equity-focused alternate investment fund (AIF), according to persons in the know. The fundraising, which comes amid a strong rally in the markets that has led to concerns overvaluation, will take about 6-9 months, and the company will target high-networth individuals (HNIs), family offices and institutional investors for investment commitments, the sources said.

When contacted, Edelweiss declined to comment. The sources in the know said the company is targeting to raise over Rs 1,000 crore in the Edelweiss Dynamic Growth Equity (EDGE) Fund and raise more money based on the performance. Over the next few months, it plans to go overseas for widening its asset under management pool through the AIF.

It may go to foreign investors as well once it has raised up to Rs 3,000 crore. Currently, the company has Rs 1.70 lakh crore of assets under advice on an overall basis. "This is the first time that we are entering the equity side with an offering focused on long-term gains and will ensure that investors do not get worried about volatilities," said one of the sources.

The minimum amount to be invested will be Rs 1 crore, and the company desires an investor to stay invested for at least one year for the best returns, the official said. Sources said they are confident of raising the targeted amount despite the expensive valuations in the markets, saying that ample opportunities exist in India for further growth of wealth given the economic growth potential.

One of the segments they are targeting money from has gone out of the mutual fund segment, the official said. Currently, the returns on fixed-income investments are low, while there are volatilities in the equity market that become into a concerning aspect despite the potential high returns, the official added. The company will charge a fee of up to 1.75 per cent of the assets under management for their services, while there will be a dedicated team of five people managing the fund.