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Established in 2008, Edelweiss Alternative Asset Advisors (EAAA) is a prominent alternative investment platform in India. It operates a diverse, multi-strategy framework targeting large, under-explored, and rapidly growing alternative asset classes, with a focus on delivering income and yield-oriented solutions to its clients.
The company’s primary business strategies encompass two key areas: (i) real assets and (ii) private credit. Over the years, EAAA has dedicated significant effort and resources to building a scalable, global platform that caters to a broad client base, including institutional investors, ultra-high-net-worth individuals (UHNIs), high-net-worth individuals (HNIs), and family offices.
As of September 30, 2024, EAAA reported ₹572.62 billion in assets under management (AUM), reflecting its 15 years of expertise and commitment to fostering growth in alternative investments.
| Strengths and Opportunities | Weaknesses and Threats |
| Extensive experience with over 15 years in alternative investments, enhancing market credibility and investor confidence. | Exposure to market volatility affecting asset valuations and investment performance, potentially impacting returns. |
| Significant scale with ₹572.62 billion in Assets Under Management (AUM), reflecting robust growth and operational efficiency. | Dependence on regulatory frameworks; any adverse changes could impact operations and profitability. |
| Diversified, multi-strategy platform across large, fast-growing alternative asset classes, offering tailored income and yield solutions. | Competition from other alternative asset managers and financial institutions may pressure margins and market share. |
| Strong focus on private credit and real assets, tapping into under-served markets with high growth potential. | Potential liquidity risks associated with alternative investments, affecting the ability to meet short-term obligations. |
| Experienced team of 79 investment professionals, providing deep industry insights and effective investment management. | Operational risks related to managing a diverse portfolio across various sectors and asset classes. |
| Serving over 3,600 clients, including institutional investors, UHNIs, HNIs, and family offices, demonstrating a broad and diversified client base. | Challenges in scaling operations while maintaining personalized client services and investment performance. |
| Positioned to capitalize on India’s projected economic growth, expected to become the third-largest globally by 2030, attracting investors. | Economic downturns or slowdowns in India could adversely affect investment opportunities and returns. |
| Benefiting from the rise of alternative investment funds, one of the fastest-growing segments in India’s financial markets. | Changes in investor preferences or risk appetite could lead to reduced allocations to alternative assets. |
| Ability to offer bespoke solutions across various ticket sizes, catering to unique client requirements and enhancing client satisfaction. | Potential challenges in maintaining consistent performance across a wide range of investment products and strategies. |
| Expertise in sectors like performing credit, real estate credit, special situations, infrastructure yield, and energy transition, enabling investment in diverse opportunities. | Risks associated with investments in sectors subject to regulatory changes, such as energy transition and infrastructure. |
| Commitment to responsible investing, aiming to create a positive impact on the economy and society, aligning with global ESG trends. | Increasing emphasis on ESG criteria may require additional resources to ensure compliance and reporting, impacting operational costs. |
More About EAAA India Alternatives Limited
Leading Alternative Asset Platform in India
EAAA India Alternatives stands as a leading alternative asset manager in India, with over 15 years of expertise. As of September 30, 2024, the firm manages an impressive AUM of ₹572.62 billion. Its annual recurring revenue AUM (ARR AUM) has grown at a CAGR of 25.65% from ₹269.95 billion in FY 2022 to ₹426.22 billion in FY 2024, showcasing its ability to scale efficiently.
Diversified Business Strategies
Real Assets
Private Credit
Other Strategies
ARR AUM Split Across Strategies
As of September 30, 2024:
As of March 31, 2024:
As of March 31, 2023:
As of March 31, 2022:
Broad Client Base
EAAA caters to 3,682 global and domestic clients, including institutional investors, family offices, and UHNIs/HNIs. Repeat clients and a robust presence in India, North America, and Europe highlight its appeal.
With strong fund performance and a proven ability to raise capital, EAAA India Alternatives continues to solidify its position as a reliable and sustainable alternative investment platform.
Global Alternatives Industry: Size and Growth
Past and Projected AUM Growth
Regional Insights
Key Drivers of Growth
With robust growth prospects, India stands out in APAC as an emerging leader in the private alternatives space.
Industry Growth
Market Shift
Growth of SEBI-Registered Alternatives in India
India’s SEBI-registered alternative investment industry is growing rapidly. As investors seek diversification and higher returns with lower volatility, these investments are gaining popularity. With regulatory reforms and rising interest, India’s alternative investment space is set for further expansion. AIF commitments in India have surged, reaching Rs 11.3 trillion by FY24, growing 86 times since FY14, with a CAGR of 56%, reflecting a strong, sustained annual growth rate in double digits.
Growth of Real Estate Investment Trusts (REITs) in India
REITs allow individuals to invest in real estate without direct ownership, offering exposure to diversified properties. As of Q1FY25, India has four listed REITs managing over Rs 1.4 trillion in assets.
The real estate investment sector in India has seen significant growth, particularly through Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).
InvITs Overview
Outpacing Traditional Investments
Growth Drivers for SEBI Registered Alternatives in India
The India Alternatives Market has been shaped by several key factors, categorized into macro, demand-side, and supply-side drivers.
India’s alternative investment industry has witnessed substantial growth over the past decade, driven by increasing investor interest and a favorable regulatory environment.
Industry Growth and Market Size
Key Drivers of Growth
Key Segments: Private Credit, Real Assets, and Private Equity
EAAA India Alternatives is positioned to benefit from India’s booming alternative investment market, which has seen a substantial increase in Assets Under Management (AUM), growing nearly sevenfold to ₹74.5 trillion by FY24, highlighting its potential for further growth.
With its diversified strategies in real assets and private credit, EAAA India Alternatives is well-placed to capitalize on the increasing demand for higher returns and diversification among investors. This positions the firm to benefit from the rising popularity of alternative investments.
EAAA India Alternatives serves a broad client base of 3,682 global and domestic clients, including institutional investors and high-net-worth individuals. This large, diverse clientele enables the firm to tap into the growing institutional and individual interest in India’s alternative investment space.
The firm’s strong fund performance and established capital-raising capabilities enhance its reputation in the market. This attracts more investors seeking exposure to India’s expanding alternative investment market, positioning EAAA to secure a greater share of investor capital.
EAAA India Alternatives is well-positioned to benefit from the rapid growth of emerging asset classes, such as private credit and real assets. This strategic focus aligns with the industry’s expansion, positioning the firm to capitalize on projected double-digit growth in the global private alternatives industry.
With a solid presence in India, North America, and Europe, EAAA India Alternatives can tap into diverse markets, benefiting from the increasing global interest in alternative investments. The firm’s international footprint enables it to attract a wide range of investors globally.
Edelweiss Alternative Asset Advisors (EAAA), a subsidiary of Edelweiss, has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for a ₹1,500 crore Initial Public Offering (IPO). The IPO is a complete offer for sale (OFS), with Edelweiss Securities and Investments Private Limited acting as the selling shareholder. The offer involves the sale of shares with a face value of ₹5 each, allowing existing shareholders to exit and providing a platform for public investment in the firm. This marks a significant step for EAAA in expanding its reach.
Why is EAAA India Alternatives Limited Going Public?
EAAA India Alternatives Limited is going public through an Initial Public Offering (IPO) to facilitate an Offer for Sale (OFS) of ₹1,500 Cr worth of shares. The entire proceeds from this offering will go to the selling shareholder, Edelweiss Securities and Investments Private Limited.
| Category | Details |
| Issue Type | Book Built Issue IPO |
| Total Issue Size | Fresh Issue: NA |
| Offer for Sale: ₹1500 crores | |
| IPO Dates | TBA |
| Price Bands | TBA |
| Lot Size | TBA |
| Face Value | ₹5 per share |
| Listing Exchange | BSE, NSE |
| Shareholding pre-issue | TBA |
| Shareholding post -issue | TBA |
Important Dates
| IPO Activity | Date |
| IPO Open Date | TBA |
| IPO Close Date | TBA |
| Basis of Allotment Date | TBA |
| Refunds Initiation | TBA |
| Credit of Shares to Demat | TBA |
| IPO Listing Date | TBA |
IPO Lots
| Application | Lots | Shares | Amount |
| Retail (Min) | TBA | TBA | TBA |
| Retail (Max) | TBA | TBA | TBA |
| S-HNI (Min) | TBA | TBA | TBA |
| S-HNI (Max) | TBA | TBA | TBA |
| B-HNI (Min) | TBA | TBA | TBA |
Lead Managers
| Lead Managers |
| Axis Capital Limited |
| Jefferies India Private Limited |
| Motilal Oswal Investment Advisors Limited |
| Nuvama Wealth Management Limited |
EAAA India Alternatives Limited IPO Valuation Overview
| KPI | Value |
| Earnings Per Share (EPS) | 27.25 |
| Price/Earnings (P/E) Ratio | TBD |
| Return on Net Worth (RoNW) | 27.30% |
| Net Asset Value (NAV) | 113.48 |
| Return on Equity | 27.30% |
| Return on Capital Employed (ROCE) | – |
| EBITDA Margin | 43.50% |
| PAT Margin | 29.98% |
| Debt to Equity Ratio | 0.61 |
Peer Group Comparison
| Name of Company | Face Value (₹) | Revenue
(₹ Million) |
EPS (₹) | Basic EPS (₹ per share) | NAV (₹ per share) | P/E | RoNW (%) |
| EAAA India Alternatives Limited | 5 | 5838.54 | 27.25 | 27.25 | 113.48 | NA | 27.30 |
| 360 One WAM Limited | 1 | 25070.30 | 22.48 | 21.86 | 96.13 | 49.38 | 23.31 |
EAAA is a seasoned leader in India’s real assets and private credit market, leveraging over 15 years of experience. It plays a significant role in India’s expanding investment sector, particularly in private credit and real assets. With a robust market position, the company successfully capitalizes on the rapid growth in India’s alternative investment market, which is projected to grow significantly in the coming years.
As a diversified multi-strategy platform, EAAA offers a broad array of investment products focused on income-generating sub-strategies. It operates across several key sectors, such as real estate, credit, and energy transition, providing tailored solutions to meet client needs. The company’s consistent track record in delivering robust results demonstrates its strong expertise and commitment to generating long-term value for its investors.
The company places high importance on client trust, satisfaction, and long-term relationships. Its strong presence across multiple regions, including North America, Europe, and Asia, along with a dedicated client servicing platform, enables it to meet the evolving needs of both domestic and international clients. This global reach and personalized approach help foster superior client experiences and ensure continued growth and expansion.
The company leverages in-house and third-party technology to enhance client experiences, optimize efficiency, and ensure scalability. Through AI-powered onboarding, automated recovery management, and streamlined processes, it reduces turnaround times and operational costs. Automation tools improve data integrity, simplify fund operations, and expedite approval processes, enabling scalable growth, strategic decision-making, and improved client satisfaction and performance.
Sekura, a subsidiary, manages most of the company’s funds’ portfolio assets, including infrastructure, real estate, and energy operations in over 10 states in India. The platform focuses on asset quality through extensive due diligence, experienced teams, and a ‘PPT’ approach. Sekura’s strategy is driven by robust processes, technology, and a commitment to operational efficiency, ensuring sustainable asset management.
The company has implemented a proactive risk management framework that assesses risks at both pre-investment and post-investment stages. Their risk governance includes independent assessments, regular monitoring, and alignment with global ESG best practices. The team utilizes advanced technology, such as real-time heat maps and automated tools, for efficient monitoring and mitigation of risks, ensuring the security of assets.
The senior management team boasts an average of 23 years of industry experience and a track record of success across economic cycles. Their leadership, stability, and commitment to the company’s investment philosophy have contributed to significant growth in assets under management (AUM). The team’s long-term tenure fosters value creation and aligns the interests of the company, its clients, and its employees.
The Promoter Selling Shareholder will be entitled to receive the entire proceeds from the Offer, after deducting the Offer expenses and applicable taxes. The Company will not receive any proceeds from the Offer.
EAAA India Alternatives Limited Financials (in million)
| Particulars | 30 Sept 2024
|
31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets | 18908.83 | 17696.60 | 12370.43 | 3103.32 |
| Revenue | 4144.58 | 5842.50 | 7012.26 | 2159.68 |
| Profit After Tax | 1236.78 | 1751.61 | 3221.93 | 489.33 |
| Reserves and Surplus | 8365.06 | 4806.37 | 2013.29 | 321.34 |
| Total Borrowings | 4048.89 | 4448.29 | 2445.16 | 848.64 |
| Total Liabilities | 10222.36 | 10401.77 | 6833.39 | 1558.23 |
Key Insights from Financial Performance
Key Strategies for EAAA India Alternatives Limited
As of September 30, 2024, the company has expanded its client base globally, managing nearly US$3.76 billion across multiple institutional clients. By addressing unmet needs in the U.S. and Indian markets, it has attracted substantial investments. The dual “Whale & the Long Tail” strategy has successfully raised over US$100 million from 12 key clients, positioning the company for growth.
The company aims to enhance its Real Assets strategy by acquiring growth-oriented assets, incorporating advanced ESG parameters, and focusing on infrastructure, energy, and real estate growth. Simultaneously, it will expand its Private Credit business, targeting customized financing solutions across core, performing, and special situations, while leveraging changes in India’s regulatory landscape and the growing demand for private credit.
The company is committed to advancing its operational efficiency and client experience through continuous technological and digital innovations. By investing in AI, machine learning, and predictive analytics, it enhances client acquisition, improves asset management, and ensures seamless interactions. With a focus on sustainability and data-driven insights, the company aims to maintain its competitive edge, drive growth, and create long-term value.
The company focuses on enhancing active asset management by leveraging technology and operational capabilities. Utilizing POMT’s smart platform, AI, machine learning, remote monitoring, predictive maintenance, and drones, it aims to optimize data analysis, automate processes, improve governance, and drive operational efficiency for better investment outcomes and client experiences.
The company is committed to delivering consistent investment performance and portfolio differentiation through disciplined, research-driven strategies and active asset management. Its diversified approach across Real Assets and Private Credit ensures stable, long-term yields. By continuously innovating and expanding its portfolio, the company aims to strengthen its competitive position and meet evolving client needs.
The company strengthens its employee value proposition to attract and retain high-quality talent, focusing on senior management and investments. By investing in upskilling, mentoring, and leadership development, the company nurtures leadership at all levels. Additionally, it recruits from top MBA institutions, fostering a diverse talent pool for future growth.
1. 360 One WAM Limited
360 One WAM Limited provides a comprehensive range of alternative investment strategies, focusing on wealth management and private equity. EAAA’s offering, backed by Edelweiss, has a strong institutional backing and aims to expand its reach through an IPO, providing wider investor participation opportunities compared to 360 One WAM.
2. Kotak Investment Advisors
Kotak Investment Advisors offers diverse alternative investment strategies in private equity, real estate, and infrastructure. EAAA, focusing on a complete offer for sale (OFS), also targets these segments but may have a more niche approach, leveraging its strong market position under Edelweiss for broader outreach and investor access.
3. ICICI Venture
ICICI Venture specializes in private equity and venture capital, offering investment solutions across various sectors. EAAA differentiates itself by focusing on a complete OFS structure, providing liquidity options to existing shareholders while offering potential for public investment, which may appeal to investors seeking stability and exit options.
4. IIFL Wealth Management
IIFL Wealth Management focuses on offering alternative investment opportunities to high-net-worth individuals (HNWIs), providing tailored solutions. EAAA, while similarly focused on asset management, provides a more institutional approach to public investors through its IPO, making its offerings more accessible to a broader investor base.
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The IPO size for EAAA India Alternatives Limited is ₹1,500 crore, which is a complete Offer for Sale (OFS) with no fresh issue of shares.
The opening and closing dates for the EAAA India Alternatives Limited IPO are yet to be announced. The timelines will be updated once available.
The face value of each share in the EAAA India Alternatives Limited IPO is ₹5, with shares being offered as part of the Offer for Sale (OFS).
Edelweiss Securities and Investments Private Limited is acting as the selling shareholder in the EAAA India Alternatives Limited IPO, facilitating existing shareholders’ exit.
The EAAA India Alternatives Limited IPO will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) upon successful completion.
The proceeds from the IPO will primarily go to the selling shareholders as part of the Offer for Sale (OFS), providing them with an exit opportunity.