| Fund name | Asset class | License |
| Crossover Opportunities Fund III | Late- Stage PE & Pre IPO | SEBI AIF CAT II |
About
Edelweiss Wealth Management (EWM) is one of India’s largest wealth management firms with Assets under Advisory (AUA) of over ~ USD 19 billion servicing ~6, 70,000 Affluent & HNIs and ~2,400 of India’s wealthiest families. Our investment expertise and high touch services span major asset classes and a suite of wealth management solutions including Investment Advisory, Estate planning, Investment management, securities and broking for individuals and institutions, CXOs, professional investors and family offices.
Key staff
Ashish Kehair- CEO: Nearly 2 decades of experience in Banking & Financial Services. Strategic leadership roles across wealth management, private banking, asset management, private equity and treasury. Drives strategy and expansion at Edelweiss. Qualified Chartered Accountant & Cost Accountant.
Alok Saigal- PRESIDENT & HEAD: Over 18 years of experience in Investment Advisory, Investment Banking and Capital Markets. Formerly with Darashaw and HDFC Bank. Masters in Economics from Delhi School of Economics.
Fund Manager – Pranav Parikh, CFA (Edelweiss Crossover Opportunities Fund Series III) Pranav has close to 20 years of investing experience in USA as well as India, he was awarded the best PE Deal maker. He successfully managed the first 2 series of Crossover Fund making many successful investment calls.
Investment philosophy
Multi asset class expertise
The Edelweiss Group has the expertise and knowledge honed from operating across several markets, across different market cycles and conditions, across different asset classes. All this expertise and learning is available to the Edelweiss Private Wealth team to draw upon in their effort to enrich and bolster the business offerings. We offer research, investment ideas, themes and actionable strategies and opportunities across: Equity Commodities Agri & Metals Real Estate Fixed Income Currencies
Risk management
Edelweiss are guided by our principle that “We will respect risk” but not allow risk to slacken the pace of growth. Hence, managing risk is of utmost importance at Edelweiss Private Wealth. They sensitize clients to primarily 3 types of risk and have in-built robust, time tested, quality processes to manage them. Product risk or the danger of recommending the inappropriate product is minimized by a thorough understanding the client needs. They recommend customised products that maximize returns while respecting the individual’s risk appetite. Product risk is managed by consultative reviews with expert product review committees and other review mechanisms that ensure that our client always gets what is best for him. Portfolio Risk: A portfolio is vulnerable to the environment. They work to make it immune to environmental volatility, recommending asset classes and products as per client suitability, life stage needs and optimizing the composition to maximize benefit for the client’s investment strategy. Their approach blends in a system of checks and balances, through reviews and quantitative analysis by proprietary tools. Operational Risk: We are always humbled by tremendous faith reposed in our ability and function by the client. We have elaborate and extensive systems, processes and checks to ensure that trust is never shaken by random acts. These robust processes too are regularly monitored for efficacy. Family & Enterprise Risk Audits: We have proven capabilities to help clients audit their family and enterprise functions for exposure to risk and present solid solutions that work.
Institutional approach
Edelweiss is a large diverse business house with a structured, transparent and proven approach to business. Edelweiss Investment Committee is one such unique platform that has evolved from its practice and is much appreciated by the clients of Edelweiss Private Wealth. The committee of senior Edelweiss Experts from the related business deliberates and debates to provide valuable advice for the client. The Financial Advisor is thus empowered to advice the client through a comprehensive investment advisory process.
Innovation
Bold, ‘out-of-the-box’ thinking has contributed significantly to our growth. We share this attribute at work and put it to practice. Our client experiences innovation at various levels of interactions, like, reporting, new age product design and various customized solutions. The commitment to understanding the client’s need and structuring a differentiated solution that works is put to test every day at work here.
Governance and transparency
We look at the business as a partnership. Clarity of thought and action governs our practice. Our client is sensitized to his investments, disclosures like risk factors, suitability besides applicable fees, etal. We believe that our clients are super achievers, experts in their field, and must also understand the approach we have taken for their investments.
Investment Philosophy
Fund management team believes that the late PE investors has distinct advantage in terms of timing, just before value unlocking for a company is about to happen. Multiple PE exits and liquidity for promoter family being necessary and this is where the Crossover fund comes to play. The play in the fund is on mass market brands that have scalability and visible room for growth to ensure maximum returns.
Media
Title – Edelweiss – wealth to raise 5000 cr for crossover – opportunities fund 3, Economic times, March 2021
Edelweiss Wealth Management (EWM) has launched the third series of Edelweiss Crossover Opportunities Fund (Crossover III) with a targeted corpus of Rs5000 crore ($700 mn). A Category II AIF, it will focus on late-stage PE and Pre-IPO investments, Crossover III will see the largest fund raise in the series, having raised Rs2200 crore through the earlier series. With the late-stage PE / Pre-IPO strategy, the fund opens up access to private investments and also facilitates meaningful allocation to investors.
Nitin Jain, MD & CEO said, “He Edelweiss Crossover strategy adopts a partnership approach with its portfolio companies, where throughout the investment period, the fund team engages deeply with the company’s management to create a positive impact on their performance and thereby maximizing returns for our investors”
Title – Edelweiss Wealth Management Aims to Raise 1 Billion in Late – Stage – Pre – IPO PE Fund, Business World, August 2021 Link – http://www.businessworld.in/article/Edelweiss-Wealth-Management-Aims-To-Raise-1-Bn-In-Late-Stage-Pre-IPO-PE-Fund/12-08-2021-400474/
The announcement comes amid a big surge in initial public offers due to easy liquidity and many of the issues have seen huge gains on listing. Edelweiss said its ‘crossover’ strategy will continue with the launch of a series of funds over the next 12-18 months to achieve the target of USD 1 billion.
Edelweiss Wealth Management on Thursday said it is targeting to raise USD 1 billion through a pre-IPO and late-stage private equity fund. The city-based company, which launched the ‘Edelweiss Crossover Opportunities Fund’ in March this year, has already raised USD 500 million across its first three series, it said in a statement.
It announced the launch of ‘Series IIIA’ with a target to raise another USD 200 million under the same strategy, it said. The announcement comes amid a big surge in initial public offers due to easy liquidity and many of the issues have seen huge gains on listing. Edelweiss said its ‘crossover’ strategy will continue with the launch of a series of funds over the next 12-18 months to achieve the target of USD 1 billion.
Analyst questions
Why there is no information available on the website about the Crossover Fund series (1, 2, and 3) (Performance report )
What kind of returns are you looking to generate with the Crossover Fund 3 ?
How do you evaluate which company to invest in? Since there is an IPO frenzy in the current market?
Why is the wealth management division running a PE fund when there is an asset management division in the group?
Prepared by – Aryan Pandey, October 2021
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