WestBridge picks up minority stake in mutual fund arm of Edelweiss

Homegrown private equity fund WestBridge Capital has picked up 15% stake in the mutual fund arm of Edelweiss Financial Services in a recent transaction, adding another firm to its BFSI portfolio.

WestBridge Capital has invested Rs 450 crore (around $51 million) in Edelweiss Mutual Fund, one of the key businesses for Edelweiss Asset Management Ltd, as per a press statement.

MF had a profit after tax of Rs 53 crore for FY25. The current transaction values the business at 57x P/E which aligns with industry benchmarks of 30x to 60x, the statement said.

“This transaction reflects the confidence in the long-term potential of our Mutual Fund business. It initiates the value unlock for EFSL [Edelweiss Financial Services Ltd], strengthens the growth path of Edelweiss MF, and brings in a seasoned longterm partner,” said Rashesh Shah, chairman & MD at EFSL.

Edelweiss MF claims it has reached a total AUM of Rs 1,52,200 crore as of June 30, 2025, reflecting a 44% CAGR over the last five years.

Edelweiss is a diversified financial services company with seven independent businesses including alternative asset management, mutual fund, asset reconstruction, NBFC, housing finance, general insurance and life insurance. Edelweiss employs nearly 6,000 people who serve around 1.1 crore customers. The firm is said to be managing around Rs 2,30,000 crore worth of assets.

“We believe financialization of savings is a massive industry tailwind and strongly believe Edelweiss MF is very well placed to benefit from the same. We look forward to supporting the team in scaling the business further,” said Deepak Ramineedi, partner at WestBridge Capital.

Nomura Financial Advisory and Securities (India) Pvt Ltd acted as the exclusive financial advisor to EFSL on the said transaction.

As for WestBridge Capital, the investment firm has over $7 billion in assets under management (AUM). 

The PE firm, which backs unlisted companies and also makes private investments in public equities (PIPE), has recently trimmed its stake in another financial services portfolio Aptus Value Housing Finance India.

The partial exit from Aptus was the first liquidity move by WestBridge this year. Last year, it made several exits and harvested a total of more than $1.1 billion, as per VCCircle estimates.

WestBridge sold the bulk of its remaining stake in AU Small Finance Bank, likely exited its small exposure to ICICI Bank via its American Depositary Receipts, and divested its stake in cloud security company Zscaler Inc. It also trimmed its holding in Indian software-as-a-service (SaaS) company Freshworks Inc, home financier Aptus and airline IndiGo; and made a full exit from Hindustan Foods.