Asset Reconstruction

DISTRESSED ASSET CREDIT

Asset Reconstruction

Edelweiss is the largest stressed asset investor in India with key focus on assets that have a potential for revival. Our Assets Under Management (AUM) exceed Rs. 39,000 crore. Caisse de dépôt et placement du Québec (CDPQ), a USD 250Bn Canadian pension fund, recently announced a long-term partnership with Edelweiss in this business. Edelweiss, along with CDPQ, is looking to invest about Rs. 10,000 – 12,000 crore over the next three or four years.

Our success is due to a business platform that rests on three pillars:
 
Edelweiss ARC
  • Largest ARC in India with AUM in excess of Rs. 39,000 cr.
  • Focused on resolving large assets by financing last-mile
    capital requirements and providing turnaround support
  • Partnership with over 56 Banks/FIs
 
Edelweiss Funds
  • Raised and invested more than Rs. 1000 cr. under third party
    funds like EARF, ESTAR, EISAF -1 etc.
  • Currently in process of deploying CDPQ & EISAF -2 funds with
    committed corpus of $860 million for the stressed business.
 
Turnaround Management
  • Strong operations turnaround capability built in-house
  • Advisory board of experts from steel, power, infra and
    manufacturing streams empanelled

Our business philosophy is best encapsulated as “Resolve, Reconstruct and Revive”. As far as possible, we believe in reviving an asset and are in principle against asset stripping.

We believe that not all Non-Performing Assets are bad assets. If projects are technically feasible and financially viable, other deficiencies like promoter, management and cash crunch are addressable.

We take an ‘Active Partner’ approach to resolution of acquired NPAs. This is done through:
 
  • Acquisition of majority stake in debt to have absolute control
    on restructuring and/or enforcement
  • Provide financial support necessary for restart – capex and/or opex
  • Handholding of company through the revival phase
  • Leverage Edelweiss’s local & global reach and financial expertise