Carlyle to invest in Edelweiss arm

Edelweiss Financial Services Ltd said investment funds affiliated with Carlyle will buy a strategic majority stake in company’s arm Nido Home Finance Ltd. As part of the deal, Carlyle Asia Partners will invest Rs 2,100 crore (about USD 230 million), which includes buying a 45 per cent stake in Nido from Edelweiss through a secondary purchase and a primary equity capital infusion of Rs 1,500 crore (approximately USD 165million) in Nido.

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Established in 2010, Nido is one of India’s leading housing finance companies, providing home loan solutions to customers across the affordable housing and mass-market segments. With a robust presence across the country, Nido operates a large network of branches, serving over 800 talukas (sub-districts) in India, and currently manages an AUM of Rs 4,804 crore (approximately USD 530 million).

“The investment by Carlyle in Nido is a key milestone and brings in a high-quality, long-term partner to accelerate Nido’s next phase of growth. At a time when India’s housing finance sector is witnessing strong structural demand, supported by rising affordability and deeper access to formal credit, Nido is well-placed to participate meaningfully in this opportunity,” Rashesh Shah, Chairman & MD, Edelweiss, said.

“Housing remains a critical national priority for India, and we have strong conviction in the growth potential of the housing finance industry. We are excited to build on our extensive experience in financial services and housing finance to help Nido scale its operations and serve the expanding needs of affordable housing segments in the rural and semi-urban markets. Additionally, we look forward to leveraging our operational experience to support Nido in strengthening its governance and risk management frameworks for longterm sustainable growth and success,” Sunil Kaul, Partner and Asia Financial Services Sector Lead, Carlyle, said.

For Edelweiss, the partnership seeks to advance its objective of creating and unlocking value in its businesses, while reinforcing Nido’s growth momentum through the infusion of fresh growth capital.

For Carlyle, the transaction builds on its more than two decades of deep expertise, operating capabilities and strong track record investing in India’s financial services sector, including in housing finance businesses such as PNB Housing Finance Limited (PNBHF) and Housing Development Finance Corporation (HDFC). Aditya Puri, Senior Advisor to Carlyle in Asia, and former CEO and Managing Director of HDFC Bank, will also participate as an investor, underscoring the strategic importance of the investment.

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