EDELWEISS CROSSOVER OPPORTUNITIES FUND

The fund management team thinks that late-stage private equity investors have a particular edge in terms of timing, precisely as a company’s potential is about to be unlocked. The Crossover fund comes into play when several PE exits and liquidity for the promoter family are required. To generate optimum profits, the fund focuses on mass-market companies with scalability and visible space for development.

Fund’s select themes of interest

• Consumer Internet: Leading consumer brands are making use of digital media.
• Fintech: Fintech firms are using technology and data to improve financial services.
• Banking, Financial Services & Insurance: Companies in the financial services industry that are rapidly expanding and have a distinct competitive advantage in particular sectors.
• Consumer Brands: New-age consumer brands that cater to certain demographics
• Specialized Manufacturing: Differentiated value-added manufacturers
• Business Services: Company services that are important to the success of innovative business models

Edelweiss Wealth Management (EWM) has announced the establishment of the Edelweiss Crossover Opportunities Fund (Crossover III), which has a target corpus of INR 5000 crore (USD 700 million). It would be a Category II AIF, focusing on late-stage private equity and pre-IPO investments, a market that the Crossover series has pioneered in India. Since then, the late-stage PE industry in India has gained traction, rising to a new level of size and bringing up new prospects. After raising INR 2200 Cr in the previous series, Crossover III will witness the greatest money raised in the series.

With this fund, Crossover III will continue to expand on the platform’s experience, knowledge, and capacities to provide the market with flexible and tailored financing options. The Fund will work with top-tier entrepreneurs and management teams to help them transition from privately owned firms to high-performing, long-lasting public franchises.

The fund’s late-stage PE / Pre-IPO approach allows investors to have access to private investments that are often unavailable to most investors, allowing them to profit from structural growth trends early on with realistic exit time horizons. Aside from that, the fund will provide significant allocation to investors who want to participate in new and rising leaders of India’s future through its investment in IPOs of high-quality firms. Despite recent market crises, this approach has performed well in terms of producing steady returns and lower than market drawdowns during this period of great volatility.