New Delhi, July 17 -- Mumbai-based EAAA India Alternatives, which was formerly known as Edelweiss Alternative Asset Advisors, has exited an investment made through its performing credit strategy, marking another successful realisation for the platform, two people aware of the development told VCCircle.
EAAA, the alternative asset management arm of Edelweiss Group, has exited from a homegrown industrial fastener manufacturer Deepak Fasteners Ltd.
The exit marks the completion of a Rs 275-crore structured credit transaction anchored by EAAA's Performing Credit Fund, the people said.
Deepak Fasteners had used the funding from EAAA to repay higher-cost debt raised from Capri Stressed Assets Fund.
Emails sent to EAAA India Alternatives and Deepak Fasteners didn't elicit a response till the time of publishing of the story.
The structured financing enabled Deepak Fasteners to optimise its capital structure, refinance high-cost debt and meet its working capital requirements. Within 18 months of the investment, the company's earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 24%, while its credit rating was upgraded by four notches, one of the people said.
The investment was structured as a senior secured lending facility with a monthly cash coupon, resulting in a gross internal rate of return (IRR) of about 16% at the time of exit, the second person said.
Founded in 1958 by Kailash Chandra Kalra, Deepak Fasteners is among India's largest industrial fastener manufacturers. The company sells its products under the Unbrako brand and serves customers across sectors such as building and construction, industrial goods, petrochemicals, automotive and energy.
During the first seven months of FY26, the company reported total operating income of Rs 430.28 crore, while profit after tax (PAT) margin expanded sharply to 8.34%.
Deepak Fasteners is backed by BanyanTree Advisors. Besides BanyanTree, it also counts DEG, a member of Germany's KfW banking group, as an institutional investor
EAAA India Alternatives manages one of India's largest multi-strategy alternatives businesses and has more than 15 years of experience managing alternative assets. It manages assets worth around Rs 72,700 crore across its alternative investment strategies. The platform operates through two key business verticals: private credit and real estate, has a team of around 80 investment professionals, and serves more than 5,900 clients.
EAAA's private credit business provides structured financing to corporates, projects and sponsors that have limited access to conventional sources of credit. Its offerings span performing credit for growth capital, mergers and acquisitions, and promoter stake enhancement; investment-grade credit through bespoke financing solutions for operating companies; special situations financing, including stressed loan buyouts and high-yield senior debt; and real estate credit for mid-income and affordable housing projects.
Published by HT Digital Content Services with permission from VC Circle.