Edelweiss Financial Services Limited · NSE:EDELWEISS
Edelweiss Financial Services — Investor Presentation (February 2024)
35 slides from Edelweiss Financial Services's investor presentation, Feb 12, 2024
Slide 1: Cover letter to stock exchanges: Update on Edelweiss Alternatives Business
EW/Sec/2023-24/273 February 12, 2024 BSE Limited National Stock Exchange of India Limited P J Towers, Exchange Plaza, Dalal Street, Fort, Bandra Kurla Complex, Bandra (E), Mumbai – 400 001. Mumbai – 400 051. Scrip Code: 532922 Symbol: EDELWEISS Dear Sir/Madam, Sub: Update on Edelweiss Alternatives B
Slide 2: Edelweiss Alternatives Business Update (Q3 FY24)
US $ version Edelweiss Alternatives Business Update (Q3 FY24) 1
Slide 3: Contents
Contents Asset Management Business Edelweiss Alternatives - A Strong Presence in Indian Private Market Alternatives A Differentiated Platform Poised to Seize the India Opportunity Financial Performance Vision & Way Forward 2
Slide 4: Asset Management Business
Asset Management Business • Asset Management Industry • Alternatives: Mainstream in India Aided by Strong Appetite for Yielding Products • Private Credit and Real Assets in India: Offering a Large Scalable Opportunity, USD 225bn by 2035 3
Slide 5: Asset Management Industry
Asset Management Industry Asset Management Mutual Funds Alternative Investments Public Public Private Investments Investments Investments • Private Equity • Listed Debt • Hedge Funds • Listed Equity (HFs) • Hybrid • Long/short • Real Assets • ETFs • Private Credit Edelweiss Alternatives Edelweiss Al
Slide 6: Global Alternative Asset Management Industry: Growth Trends
Global Alternative Asset Management Industry: Growth Trends Global Alternatives AUM (USD bn) Breakup of Global Alternatives AUM 2023 ~USD 15 Trillion 8% Private Equity 2020 16% 2005 Private Debt 2015 Real Assets 76% 2010 66% 2005 1.35 Trillion 2023 22% 2000 0 4000 8000 12000 16000 12% Private Credit
Slide 7: Alternatives are Mainstream in India
Alternatives are Mainstream in India… INDIAN ALTERNATIVES AUM (USD BN) 96 4x 58 35 23 2010 2015 2020 2023 6
Slide 8: Aided by India's Growth Story
…Aided by India’s Growth Story… North America 25% of GDP Proportion of Europe Alternatives 14% of GDP as % of GDP India 3% of GDP As India’s GDP scales up to USD 10 tn over next 10-11 years, Alternative Asset Management AUMs estimated to grow exponentially to USD 600 bn 7
Slide 9: And a Rising Appetite for Alternative Assets
…And a Rising Appetite for Alternative Assets HNI & UHNI Population of India Domestic Institutional Capital (USD bn) HNIs UHNIs 2009 2023 18,00,000 20,000 684 14,00,000 15,000 10,00,000 10,000 241 108 71 17 36 6,00,000 5,000 2017 2022 2027E NPS EPF/PF Insurance HNIs UHNIs By 2027, number of HNIs & U
Slide 10: Private Credit and Real Assets: Outpacing the Alternatives Industry in India
Private Credit and Real Assets: Outpacing the Alternatives Industry in India… PRIVATE CREDIT + REAL ASSETS AUM (USD BN) 28 14x 15 5 2 2010 2015 2020 2023 9
Slide 11: With AUMs Expected to Grow to $225bn by 2035
…With AUMs Expected to Grow to $225bn by 2035… PRIVATE CREDIT + REAL 225 ASSETS AUM (USD BN) Private Credit & Real Assets Private Equity 8x 37% 2035E ASSET CLASS MIX 63% 28 2023 2035E Private Credit & Real Assets’ share expected to reach 37% of Indian Alternatives by 2035E 10
Slide 12: Driven by a Large Structural Opportunity
…Driven by a Large Structural Opportunity Private Credit Real Assets Unlocking Solutions for All Stakeholders Real Assets National Developers Monetization Plan Banks NBFCs Mutual Funds • Unlock capital for future growth • Monetization of assets by • Deleverage Balance Sheet government including USD
Slide 13: Edelweiss Alternatives – A Strong Presence in Indian Private Market Alternatives
Edelweiss Alternatives – A Strong Presence in Indian Private Market Alternatives • A Pioneer Across Private Credit & Real Assets with a Diversified Array of Investment Solutions for Clients • Diversified Client Base in India and Overseas • Proven Track Record: Most Strategies in their 2nd or 3rd Ser
Slide 14: Our Pioneering Journey Spanning Over A Decade
Our Pioneering Journey Spanning Over A Decade… An industry Early mover in Our First Pioneer in first Special sustainable Performing Situations Infrastructure energy with USD bn Credit Fund Yield Strategy Fund Climate Fund Secured first major 2023 $6.3bn Expanded our First significant client base to
Slide 15: With a Growing Array of Investment Solutions
…With a Growing Array of Investment Solutions… 2010 2016 2020 Feb-2024 Performing Corporate Credit Performing Corporate Credit Performing Corporate Credit Private Performing Corporate Special Situations Special Situations Special Situations Credit Credit Real Estate Credit Real Estate Credit Real Es
Slide 16: Diversified Client Base
…Diversified Client Base… AUM by Geography 2,800+ India North America Unique client relationships 33% EMEA & APAC 35% across the world ~1/3 of AUM ~1/3 of AUM Rest of the World 32% North America 10 Clients with AUM of over ~INR 800 Cr (USD 100 mn) ~1/3 of AUM India ~60% Of AUMs from Pension fund and
Slide 17: A Demonstrated Track Record over Last 5 Years
…And a Demonstrated Track Record over Last 5 Years… Delivering superior risk-adjusted returns while focusing on capital preservation across market cycles Fund Raise Deployment Realizations ~USD 3.63 bn ~USD 2.7 bn ~USD 2.97 bn Most strategies are now in 2nd and 3rd series 16
Slide 18: Making Us India's Leading Alternative Asset Manager
…Making Us India’s Leading Alternative Asset Manager… 13 Years Investment Experience Only Indian Alternatives player to USD 6.3 bn consistently feature in top PDI fund raisers of the year for 3 consecutive years AUM 300+ A signatory to the United Nations- supported Principles For Responsible Strong
Slide 19: With Accolades Across Credible Platforms
…With Accolades Across Credible Platforms Top Fund Raisers Private Debt Investor (PDI) – 2023, 2022, 2021 Indian Alternatives Investment Thought Leaders Awards Equalifi – 2024 Safety Excellence British Safety Council, 2023/ 2022 Uttar Pradesh Annual Solar Awards – EQ International Safety Awards – Me
Slide 20: A Differentiated Platform Poised to Seize the India Opportunity
Edelweiss Alternatives - A Differentiated Platform Poised to Seize the India Opportunity • Technology Driven Asset Management Platform • Robust Governance and Risk Management Frameworks • Well-rounded Client Centric Platform • Tenured and Experienced Team 19
Slide 21: Well Positioned To Capture India's Growth Story
Well Positioned To Capture India’s Growth Story Strong Asset Management Capabilities Robust Governance and Risk Standards 1 Technology driven asset management platform to enhance and preserve value of investments 2 Robust governance framework and monitoring of investments by independent risk team We
Slide 22: Technology-Driven Asset Management
Technology-Driven Asset Management Technology Centralized control room for Application-based inspection tool for Technology-enabled Safety Health proactive asset management proactive approach to maintenance Environment initiatives Processes & Certification Certificate for Occupational Certificate fo
Slide 23: A Robust Governance and Risk Management Framework
A Robust Governance and Risk Management Frameworks Effective Risk Management Framework Institutional Governance Framework 1 3C framework (Counterparty, Advisory Boards Collateral & Cashflows) for funds comprising key for credit evaluation clients 2 Regular monitoring & risk-based Annual asset level va
Slide 24: A Well-Rounded Client Centric Platform
A Well-Rounded Client Centric Platform Coverage Team 10+ member global coverage team Broad Domestic Reach Holistic Solutions Platform with presence in Mumbai, Singapore and GIFT City that can cater to - • Onshore and Offshore clients • Institutional and UNHI / Family Offices End to End Platform Capa
Slide 25: A Tenured and Experienced Team
A Tenured and Experienced Team Breadth and Depth of a Highly Experienced Team 300+ Strong Team 15+ years Average tenure of 70+ Investment Professionals Investment leadership team with Edelweiss 100+ Asset Management Professionals 36 Average Age, an Overall Young Team 15+ Members Independent Risk Tea
Slide 26: Financial Performance
Financial Performance • Robust Financial Profile • Demonstrated History of Performance with Operating Leverage 25
Slide 27: A Robust Financial Profile
A Robust Financial Profile… Annuity Business Healthy Financial Long Duration driven by Standing Highlighted Capital Management Fee by A 0.6 D/E Ratio. Operating Upside Leverage through Carry 26
Slide 28: Demonstrated History of Performance with Operating Leverage
…And a Demonstrated History of Performance with Operating Leverage USD bn USD bn USD mn USD mn AUM FPAUM Revenue PAT 47 6.3 3.6 16.4 1.7x 2.6x 3.2x 11.7x 3.7 1.4 14 1.4 Dec-20 Dec-23 Dec-20 Dec-23 Dec-20 Dec-23 Dec-20 Dec-23 Management Fees constitutes 70% of the Revenue Revenue and PAT are for 9 mo
Slide 29: Vision & Way Forward
Vision & Way Forward • Guided by a Clear Vision • Proven Business Model with a well-defined growth plan • Target to Continue Healthy Growth of AUM 28
Slide 30: Guided By A Clear Vision
Guided By A Clear Vision… Be the trusted and respected India alternative asset advisor, Creating value for all stakeholders 29
Slide 31: With A Proven Business Model
…With A Proven Business Model… Strong and Long- Tenured & Asset Management Standing Coverage Experienced Expertise Platform Investment Team (Return Capital) (Raise Capital) (Deploy Capital) 30
Slide 32: Leading to A Well-defined Growth Path
…Leading to A Well-defined Growth Path… Increase client commitments through Regular introduction of strong investment new products performance Healthy AUM Growth to Continue Expansion into newer client segments and Maintain a robust Risk & geographies Governance framework 31
Slide 33: Towards becoming India's premier Multi Strategy Alternatives Platform
…towards becoming India’s premier Multi Strategy Alternatives Platform 32
Slide 34: To Sum Up
To Sum Up: We Are… • A long standing and differentiated platform with 13 years of investing experience • Leading Private Credit and Real Assets manager in India with 6x AUM growth in past 7 years • Highly diversified Client base with 2,800+ clients • Strong institutional platform with robust risk ma
Slide 35: Safe Harbour
Safe Harbour This document may contain certain forward - looking statements, which are tentative, based on current expectations of the management of Edelweiss Alternate Asset Advisors Ltd or any of its subsidiaries and associate companies (“Edelweiss Alternatives”). The results in future may vary fr
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