Edelweiss Alternatives to Launch Third Infrastructure Fund Exceeding $1 Billion Amid Growing Investor Demand

EAAA India Alternatives Limited Seeks to Raise $1-$1.2 Billion for Third Infrastructure Fund

EAAA India Alternatives Limited, formerly Edelweiss Alternative Asset Advisors, is engaged in talks with global and domestic investors to raise funds for its third flagship infrastructure fund, Yield Plus Fund. The asset manager aims to collect around $1 billion to $1.2 billion, with the potential to raise more if demand is strong.

The Yield Plus Fund will focus on acquiring operating assets in the renewables, roads, and transmission sectors, which generate stable long-term yields. This strategy has been successful for EAAA, and the third fund may expand into newer areas such as digital infrastructure, including data centers. The fund is part of the company's broader real assets platform, which focuses on income-generating assets across various sectors.

Infrastructure and Energy in Demand Infrastructure and energy have emerged as attractive asset classes, especially for domestic investors, due to their ability to generate high yields that are stable and long-term. This trend is evident in the interest shown by investors in other infrastructure-focused funds, such as Eversource Capital's second Green Growth Equity Fund, which is looking to raise around $750 million.

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EAAA's Infrastructure Business The company's infrastructure business follows a control-oriented approach, combining acquisition with active asset management and operational optimization to enhance yields. This strategy positions the infrastructure platform closer to yield platforms and InvIT-like structures, catering primarily to global pension funds, insurance companies, institutional investors, and family offices seeking long-duration, inflation-linked returns.

Existing Infrastructure Platform EAAA has two InvITs, Anzen India Energy Yield Plus Trust and Citius Transnet Investment Trust. The Anzen trust houses transmission and renewable energy assets, while Citius focuses on road assets. Citius, which filed draft papers for a public offer in December, plans to raise Rs 1,340 crore from investors.