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Edelweiss Crossover Fund AIF – III b

IME AIF Rating: 5-star | Open for subscription: Yes | AIF Category: Pre-IPO
  • Pre-IPO funds are an interesting category: given a large IPO-pipeline, with some interesting high-quality companies expected to go IPO (especially in the digital space). Pre-IPO funds help address the issue of very low allocations in high-quality IPO’s and help capture the large value-creation a few years prior to IPO to the listing
  • Credible Pre-IPO Investment Team: This is the third pre-IPO fund being raised by Edelweiss having seen strong performance in the previous funds raised 
  • Lower risk than private equity funds: Since investments are being made in companies that are substantially more mature than venture/private-equity stage companies and have a lower risk of exits given a planned IPO
  • Dependence on IPO market for exits: the IPO market needs to remain strong around the exit period of the funds investments, to ensure profitable exits. Any weakness in the IPO market can lead to either (a) an inability of the fund to exit, leading the fund with stuck investments (b) listing at a price below desired for requisite returns
  • Expensive valuations at the Pre-IPO stage: A large amount of capital raised to invest in the pre-IPO market segment (>12-15,000 cr) has lead to deal valuations at the pre-IPO stage having increased substantially. This makes the dependence on a ‘hot’ IPO market sustaining, critical to achieve the desired returns
  • Can be considered for Investing: Within pre-IPO funds, Edelweiss is amongst the stronger players. For investors seeking to participate in the value creation of companies getting listed, and understand the risk of a dependence on a strong IPO market for successful exits, this is a good fund to consider for investments

AMC

Highly recommended for investors seeking alternative investment options: Edelweiss AIF has created a clear niche for itself, in two core segments - Pre-IPO and High Yield Funds. Their Pre-IPO funds have been amongst the largest & best-performers in their category. The High Yield Funds benefit from Edelweiss's group's strong core competency as a niche lender in the high-yield segment. For some of these specific fund categories, Edelweiss AIF is a strong AMC to consider investing in.

AMC Rating

5 of 5 stars

AMC Pedigree

5 of 5 stars

AMC Size

5 of 5 stars

Team Pedigree

4 of 5 stars

Inv Philosophy

5 of 5 stars

Performance

5 of 5 stars