On Saturday, Edelweiss Alternatives finalized an agreement with Larsen & Toubro and the Canadian Pension Plan Investment Board to acquire their complete ownership stakes in L&T Infrastructure Development Projects at an enterprise valuation of Rs 6,000 crore.
Edelweiss Alternatives, an alternative investment fund management platform, revealed that the transaction is being executed by a fund managed by Edelweiss Alternatives, and it also entails the integration of the existing operational team.
The target company’s portfolio includes eight road projects and one power transmission asset, encompassing 4,900 lane kilometers and 960 circuit kilometers, respectively.
Following this acquisition, the infrastructure platform will expand to include 26 assets with a combined annual revenue of nearly Rs 2,700 crore. This diversified portfolio will encompass power transmission and substations, renewable energy projects, and highway assets.
Sreekumar Chatra, Managing Director of the infrastructure yield strategy fund, noted that these assets have a well-established track record of operations, are geographically dispersed, and possess long remaining operational life, aligning with their investment strategy.
Subahoo Chordia, Head of Infra Funds at Edelweiss Alternatives, highlighted that upon completion of this acquisition, they will possess a high-quality, diversified infrastructure portfolio comprising 26 assets across 13 states, solidifying their position as a prominent infrastructure investor in the country.
Edelweiss Alternatives’ infrastructure fund, referred to as the yield-plus strategy, manages infrastructure assets worth Rs 9,500 crore. It specializes in investments in power transmission, renewable energy, and highways, among other sectors. It is one of the largest funds of its kind in the country, boasting commitments from both domestic and global investors.
Edelweiss Alternatives played a pioneering role in introducing private debt in India with the launch of a $230 million fund in 2010 and has since grown to become one of the leading alternative fund management platforms, overseeing assets totaling $5.5 billion.
