'Edelweiss aims to make alternatives a $1 billion biz'

Edelweiss Asset Management Ltd, the mutual fund arm of the Mumbai-based financial services provider Edelweiss Group, is foraying into private credit with plans to launch an investment vehicle, a couple of years after rolling out a private equity fund.

The firm has also been building its alternative investment team. In November, it appointed Priyam Kedia as head, alternative credit, and Vivek Sharma as fund manager, alternative equities.

Within private equity, Edelweiss Asset Management is on its way to achieving the final close of its 1500 crore fund. So far, it has deployed ₹200 crore. Its portfolio includes companies like.

Renee Cosmetics and healthtech startup THB. In an interview, Radhika Gupta, managing director and chief executive of Edelweiss AMC, speaks about the focus on the alternative asset class and the company's strategies.

Edited excerpts: Why are you getting into private credit? And why now? There are multiple factors and multiple reasons. One is, of course, the change in taxation on the mutual fund platform. Customers need yield and yield products. These products have now become competitive. That's the demand side.

On the supply side, I think there is an incredible story. There are multiple kinds of transactions that today, traditional sources of capital such as banks, or NBFCs, will not fund; it could be a pre-IPO transaction or M&A transaction, so there's a need for capital.

Alternative investment funds (AIFS), as a construct, have a lot of flexibility. Within AMC, I think the space was something we thought we could build out. We also do have a good reputation and fixed income with the success of Bharat Bond and target maturity products.

We have the customer base; we have the distribution now.