US-based investment firm Kora Management will be investing up to $125m (£103m, €112m) into Indian financial services business Edelweiss Group.
It is set to spend $75m on Edelweiss Global Investment Advisors (EGIA), subject to structuring-related milestones and regulatory approval.
EGIA includes the businesses of asset reconstruction, wealth and asset management and institutional client group.
Edelweiss Group is also in talks with investors to join in the first external investment round in EGIA, which will be limited to $200m in total.
In addition to this investment, Kora plans to make a further investment of $50m in Edelweiss, the timing and structuring of which is being finalised.
Benefit
Rashesh Shah, chairman and chief executive of Edelweiss Group, said: “Kora Management is directly aligned with the strategic goals of the business, and we are very happy to strengthen our already long association.
“Our customers will benefit immensely from Kora’s acumen in technology and financial services across emerging markets, and their investment will help us scale our businesses in a competitive market environment.”
Nitin Saigal, Kora founder and chief investment officer, said: “Over the years, the group has successfully built a diversified financial services franchise in India, with multiple scalable platforms.
“Today, EGIA is well positioned in asset and wealth management and distressed debt, two very exciting subsegments in Indian financial services, with the potential to grow multi fold in the years to come.
“We work to be constructive partners to our portfolio companies and welcome the opportunity to partner with Edelweiss’’.
Growth plan
Each operation of the Edelweiss Group will have its own set of investors, a ring-fenced capital base, and an independent board.
The credit and life Insurance businesses have already established long term partnerships, with a strategic investment of $250m by CDPQ in the former and Tokio Marine’s 49% holding in the latter.
