The Caisse de dépôt et placement du Québec will invest US$600-700 million in the Indian financial services company Edelweiss Group over a four-year period.

Edelweiss will use the capital to invest in stressed assets, restructure debt, and provide financing to entrepreneurs and companies.

Read: Caisse invests in U.S. claims administrator Sedgwick

To do so, Edelweiss Asset Reconstruction Company and other Edelweiss funds will purchase non-performing loans from Indian banks, and private debt of emerging Indian companies.

Caisse will also acquire a 20 per cent stake in the asset reconstruction company. Other shareholders include a Scandinavian insurer (four per cent), Indian investors (16 per cent) and the Edelweiss Group (60 per cent).

Read: Caisse acquires outstanding shares of human-machine interface company

“By becoming a partner of Edelweiss, CDPQ is looking to support its growth for many years to come and, ultimately, participate in the emergence of new innovative and successful businesses in India,” said Michael Sabia, president and chief executive officer at Caisse, in a release.

Caisse opened its New Delhi office in March 2016.

Read: Caisse to invest in renewable energy in India

Copyright © 2019 Transcontinental Media G.P. Originally published on benefitscanada.com

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