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EAAA India Alternatives, an alternatives investment arm of Edelweiss Financial Services, expects its fee-paying assets under management (AUM) to grow at a compound annual growth rate (CAGR) of 23%, as the alternative investment industry expands in India.
Amit Agarwal, CEO of EAAA India Alternatives, said the company is focused on building its business across real assets and private credit, with a focus on generating returns that are less correlated with equity markets.
He added, “We want to bring the focus to fee paying AUM. While my AUM suggests the funds that have been raised across all the funds that are live today, the fee paying AUM is the right matrix which showcases on what AUM I am earning fees.”
EAAA India Alternatives reported fee-paying AUM of around ₹48,600 crore.
The company raises capital through closed-ended funds with a tenure of six to eight years, and the deployment of this capital can take nearly three years. As a result, some funds may take time to become fully deployed, while capital from earlier investments may be returned to clients as the assets mature.
Given this, the company expects its fee-paying AUM to grow at a compound annual growth rate (CAGR) of 23% and considers it the key metric to track its business performance.
The company's ₹1,200 crore initial public offering (IPO) opened for subscription on October 26 and will close on October 28. The issue is entirely an offer for sale (OFS) by Edelweiss Securities, meaning the company will not receive any proceeds from the IPO.
EAAA India Alternatives has set a price band of ₹1,585–₹1,665 per share, valuing the company at ₹10,765 crore at the upper end of the band.
The real assets business includes infrastructure investments such as operational toll roads, as well as completed commercial real estate properties that are substantially leased and generate income.
The company has built this business model over the past 15 years, targeting institutional investors, global pension and insurance funds, and family offices.
Agarwal said the IPO is intended to bring greater transparency and stronger governance to the business as India's alternative investment industry develops.
"We think that the listed companies also have a lot more transparency and governance that comes along with that, which ultimately improves the trust of the clients who are investing with the platform," he said.
The listing is also expected to support employee ownership through the group's employee stock ownership plan (ESOP), helping align employees with the company's long-term performance.
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Amit Agarwal, CEO of EAAA India Alternatives, said the company is focused on building its business across real assets and private credit, with a focus on generating returns that are less correlated with equity markets.
He added, “We want to bring the focus to fee paying AUM. While my AUM suggests the funds that have been raised across all the funds that are live today, the fee paying AUM is the right matrix which showcases on what AUM I am earning fees.”
EAAA India Alternatives reported fee-paying AUM of around ₹48,600 crore.
The company raises capital through closed-ended funds with a tenure of six to eight years, and the deployment of this capital can take nearly three years. As a result, some funds may take time to become fully deployed, while capital from earlier investments may be returned to clients as the assets mature.
Given this, the company expects its fee-paying AUM to grow at a compound annual growth rate (CAGR) of 23% and considers it the key metric to track its business performance.
The company's ₹1,200 crore initial public offering (IPO) opened for subscription on October 26 and will close on October 28. The issue is entirely an offer for sale (OFS) by Edelweiss Securities, meaning the company will not receive any proceeds from the IPO.
EAAA India Alternatives has set a price band of ₹1,585–₹1,665 per share, valuing the company at ₹10,765 crore at the upper end of the band.
The real assets business includes infrastructure investments such as operational toll roads, as well as completed commercial real estate properties that are substantially leased and generate income.
The company has built this business model over the past 15 years, targeting institutional investors, global pension and insurance funds, and family offices.
Agarwal said the IPO is intended to bring greater transparency and stronger governance to the business as India's alternative investment industry develops.
"We think that the listed companies also have a lot more transparency and governance that comes along with that, which ultimately improves the trust of the clients who are investing with the platform," he said.
The listing is also expected to support employee ownership through the group's employee stock ownership plan (ESOP), helping align employees with the company's long-term performance.
Watch accompanying video for more
Follow our live blog for more stock market updates
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