EAAA India Alternatives Ltd, backed by Edelweiss Alternatives, is an alternative investment platform focused on real assets and private credit. Institutional clients, including pension funds and insurance companies, account for 49.32% of its assets under management (AUM), while non-institutional clients contribute the remaining 50.68%.
The company is looking to raise around ₹1,200 crore through its initial public offering (IPO), which is entirely an offer for sale, at a price band of ₹1,585-1,665 per share. The issue opens on 26 October. At the upper end of the price band, EAAA India Alternatives would have an implied market capitalization of ₹10,765 crore.
The investment case hinges on how EAAA generates income, the visibility of its fee streams and the extent to which its assets are locked in for the long term.
EAAA invests across equity, quasi-equity and debt instruments, including convertible debt, and generates income through three primary streams: management and advisory fees, variable additional returns and general partner (GP) income.
Management and advisory fees are earned for managing funds and providing advisory services. Variable additional returns represent performance-linked income earned after a fund crosses its hurdle rate of return, while GP income arises from investments in funds or co-investments in portfolio companies.