Edelweiss Group says slowdown is cyclical and led by liquidity
Rashesh Shah, chairman and chief executive officer of the company, said Kora Management will be the anchor investor in the advisory business.
Aug 14, 2019 / 07:22 PM IST
Financial services conglomerate Edelweiss Group on August 14 said that slowdown in the economy is cyclical and led by liquidity after it announced that US-based investment firm Kora Management will invest up to $125 million (Rs 875 crore) in it.
In an interview to CNBC-TV18, Rashesh Shah, chairman and chief executive officer, said Kora Management will be the anchor investor in the advisory business.
Kora Management, an investment firm focused on financial and technology sectors across emerging markets, and an existing long-term investor in Edelweiss, has committed to invest $75 million (Rs 525 crore) in the advisory business, Edelweiss Global Investment Advisors (EGIA) subject to structuring-related milestones, according to a company release.
The proposed investment in the business is subject to customary regulatory approvals, it added.
EGIA includes the businesses of asset reconstruction, wealth and asset management and institutional client group, together contributing to nearly 50 per cent of the group's profit.
Kora also plans to make a further investment of $50 million (Rs 350 crore) in Edelweiss, the timing and structuring of which is being finalised, the release said.
Source: CNBC-TV 18