Edelweiss Alternatives Eyes Third Infrastructure Fund Targeting Over $1 Billion

EAAA India Alternatives Limited, formerly Edelweiss Alternative Asset Advisors, is in early discussions with investors to raise its third infrastructure-focused fund.  

The proposed Yield Plus Fund is expected to target $1 billion to $1.2 billion, according to The Moneycontrol reports. The final size may vary depending on investor participation. 

Investment Approach 

The fund is expected to continue the firm’s existing strategy of acquiring operational infrastructure assets. Key sectors include renewable energy, road projects, and power transmission networks. 

These assets generate income through contractual or regulated mechanisms such as toll revenues and power purchase agreements, which provide visibility on cash flows. 

Platform Details 

EAAA’s infrastructure investments form part of its overall real assets platform. This platform focuses on income-generating assets rather than early-stage development projects. 

The firm typically takes a controlling stake in assets and manages operations to maintain steady income. Such structures are commonly used by long-term investors, including pension funds and insurance companies. 

Existing Portfolio 

The infrastructure platform operates through 2 InvITs, Anzen India Energy Yield Plus Trust and Citius Transnet Investment Trust. Anzen holds renewable and transmission assets, while Citius is focused on road assets. 

Citius has filed draft papers for an initial public offering (IPO) and is looking to raise around ₹1,340 crore. 

Parallel Fundraising 

Separately, the firm is raising an energy transition fund with a target size of $300 million. The fund will invest in renewable energy, energy storage, and electric mobility. It has received a $60 million commitment from the European Investment Bank. 

The firm is also exploring opportunities in digital infrastructure, including data centres. 

Read More: AlphaGrep Receives SEBI Mutual Fund Licence, Plans Quant-Based Investment Strategies! 

Conclusion 

The planned fundraise comes at a time when infrastructure assets continue to attract investor capital due to their steady income profile and long-term investment horizon. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
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