Edelweiss, Japan's SBI Holdings float $100 million India market fund

Edelweiss Financial Services Ltd has joined hands with Japan's SBI Holdings Inc to set up a $100 million fund to invest in listed small and mid-cap companies in India. SBI Holdings has committed $75 million to the jointly managed fund while the remaining will come from Edelweiss.

SBI Holdings is the holding company of Japan's SoftBank Investment Group (SBI Group) and the joint venture aims at increasing private equity participation in the listed space, especially small and mid-cap firms.

It also highlights the continued interest of foreign funds in the Indian market.

PIPE investments have also become attractive since market regulator SEBI changed the takeover code last year and increased the mandatory open offer threshold from 15 per cent to 25 per cent.

Edelweiss currently has $380 million under management in the alternative assets management businesses. It raised a $230 million Edelweiss Special Opportunities Fund in 2011.

SBI Holdings had earlier set up another joint venture fund with SBI Capital Markets Ltd in 2006 with a commitment of $100 million. The fund targeted $5 million-$10 million investments in technology and life sciences business and had funded risk management and solutions company Aptivaa Consulting.