Carlyle to take control of Nido Home Finance

MUMBAI: Edelweiss Financial Services on Monday said it will bring in The Carlyle Group as strategic majority investor in its housing finance subsidiary, Nido Home Finance, with Carlyle-affiliated funds committing Rs 2,100 crore to the business.

The transaction, announced on Tuesday, involves the acquisition of a 45% stake in Nido from Edelweiss through a secondary purchase, along with a primary equity infusion of Rs 1,500 crore, and is subject to approvals from regulators including the RBI and National Housing Bank.

Aditya Puri, Senior Advisor to Carlyle in Asia, and former CEO and Managing Director of HDFC Bank, will also participate as an investor, underscoring the strategic importance of the investment, Carlyle said.

The investment will give Carlyle control of Nido and is aimed at strengthening the lender's capital base and governance as it expands its focus on affordable and mass-market housing, particularly in rural and semi-urban areas. Nido currently operates across more than 800 talukas and manages assets under management of about Rs 4,804 crore. Aditya Puri, senior advisor to Carlyle in Asia, and former CEO and MD of HDFC Bank, will also participate as an investor, underscoring the strategic importance of the investment, Carlyle said.

For Edelweiss, the deal is part of a broader push to unlock value from its subsidiaries. The group has shifted to a holding company model under its "Edelweiss 3.0" strategy and is pursuing stake sales and IPOs across businesses, including Edelweiss Alternative Asset Advisors, Edelweiss Asset Management and its mutual fund arm, following regulatory relief from the RBI. Edelweiss' asset management, insurance and credit clusters together manage over Rs 50,000 crore in assets. The transaction also reflects growing private equity interest in India's housing finance sector, which is benefiting from urbanisation, rising affordability and policy support.