Edelweiss Crossover Opportunities III
Target Yield
14.2% p.a.
Fund Type
Debt Fund
Fund Target Size
₹5,000 Cr
Fund Tenure
5 Years
Min. Commitment
₹1 Crore
Fund Structure
Close-Ended Contributory Trust
About the Fund
Edelweiss Crossover Opportunities III is a Category II AIF debt fund investing in senior secured NCDs, structured credit, and mezzanine instruments issued by mid-market Indian companies. The fund targets 20–25 borrowers across specialty manufacturing, healthcare, real estate, and consumer sectors, with portfolio concentration capped at 8% per borrower. First-charge collateral is mandatory on all senior NCD investments, with covenant-heavy documentation providing active lender protection.
The "Crossover" thesis captures credit opportunities in companies too large for NBFC lending but too early-stage for public bond markets. These borrowers offer superior yields (12–16% per annum) with institutional-grade documentation. Finance Act 2023 reduced TDS on AIF debt income to 10%, improving after-tax yields materially for investors in the 30%+ bracket.
Fund Manager Details
Ajay Agnihotri
Head – Credit Investments, Edelweiss Alternatives
22+ years in structured credit, NCD origination, and credit underwriting; formerly DSP Merrill Lynch and Citigroup
Ajay Agnihotri leads Edelweiss's structured credit franchise with 22 years of origination and underwriting experience. He manages a team of 18 credit analysts across sectors and oversees all investment committee decisions for the debt AIF platform. His prior experience at DSP Merrill Lynch and Citigroup in high-yield and mezzanine financing informs the fund's differentiated credit structuring approach.
Fund Details
SEBI AIF Registration
INP000004657
Fund Category
Category II AIF – Debt Fund
Instrument Types
Senior Secured NCDs; Structured Credit; Mezzanine
Yield Range
12–16% p.a. per instrument (pre-tax)
Borrower Concentration
20–25 companies; max 8% per borrower
Management Fee
1.5% p.a. on committed capital
Hurdle Rate
10% p.a.
Carried Interest
15% above hurdle
TDS on Interest Income
10% (Finance Act 2023, Sec 194LBC)
Fund Administrator
KFIN Technologies
Tax Treatment
Pass-through under Sec 115UB; interest taxed as business income at investor slab
Interested in this fund?
Speak with our institutional advisory team for eligibility, documentation, and onboarding.