Mumbai:  EAAA Alternatives, the alternatives arm of Edelweiss, today announced that the third series of its performing credit fund ESOF III, has returned the entire drawn investor capital, marking a significant milestone in the Fund’s lifecycle. This significant development follows the successful exit of an INR 950 crore investment in a global agrochemical platform. The Fund continues to maintain two portfolio investments of the total 17 investments, both of which are performing in line with expectations and remain on track for realization, positioning the Fund for further value creation.

With a fund size of INR 7,250 crore, ESOF III is one of the largest performing credit funds in India. The Fund has now realized approximately INR 8,700 crore through successful exits of 15 of its 17 investments, demonstrating the strength of its investment strategy and execution capabilities.

The ESOF fund series provides flexible financing solutions to high-quality businesses, supporting a wide range of strategic requirements including acquisitions, growth capital, stake consolidation, refinancing, and other bespoke financing needs. The series target gross INR returns of 16-18%, and ESOF III remains on track to achieve its targeted performance.

Amit Agarwal, Chief Executive Officer, EAAA Alternatives, said: “Our Private Credit funds have consistently delivered attractive risk-adjusted returns and strong cash yields for investors across three fund vintages. As one of the pioneers in India’s performing credit market, the ESOF strategy has established a track record through multiple credit and business cycles over the past 15 years. Returning 100% of drawn investor capital in ESOF III before the realization of the Fund’s remaining investments is a noteworthy milestone and underscores our focus on capital preservation, rigorous underwriting, and active portfolio management. Having successfully exited 15 of the Fund’s 17 investments, we remain confident in the value creation potential of the residual portfolio and its ability to deliver our targeted returns.”

EAAA Alternatives is currently deploying capital through the fourth vintage of the performing credit strategy, investing in high-quality corporates across sectors through customized financing solutions designed to support growth and create long-term value.