US-based Kora Management to invest $125 million in Edelweiss

Our Bureau Mumbai | Updated on August 14, 2019 Published on August 14, 2019

Edelweiss Group said on Wednesday that US-based Kora Management will invest up to $125 million (about ₹875 crore) in the group. Investment firm Kora, a long-term investor in Edelweiss, will invest $75 million (about ₹525 crore) in the advisory business, Edelweiss Global Investment Advisors (EGIA), subject to structuring-related milestones. It will invest another $50 million (₹350 crore) in Edelweiss Group, the timing and structuring of which is being finalised, Edelwiess Financial Services said in a statement.

Edelweiss is also in talks with other investors to join this first external investment round in EGIA, which will be limited to $200 million, it added. EGIA includes the businesses of asset reconstruction, wealth & asset management and the institutional client group, and contributes nearly 50 per cent of the group’s profits. Edelweiss said each business 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 $250 million by CDPQ in the former and Tokio Marine’s 49 per cent holding in the latter. Kora Management’s proposed investment will initiate the third and final process for the advisory business,” the statement said.

Published on August 14, 2019
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