Carlyle Group Inc. is negotiating to acquire a majority stake in an Indian home mortgage company as it aims to increase its investments in the country’s financial services sector, according to sources familiar with the situation.
Carlyle is looking to make an initial investment of $300 million in Mumbai-based Nido Home Finance Ltd., which is owned by Edelweiss Financial Services Ltd. These discussions are ongoing and not yet finalized.
If successful, Carlyle would join Blackstone Inc. and Sumitomo Mitsui Financial Group Inc. in capitalizing on India’s thriving housing finance sector. Earlier this year, Carlyle divested its long-time investments in PNB Housing Finance and Yes Bank Ltd.
Edelweiss has not commented on the matter, while Carlyle has declined to provide further information. Edelweiss expressed interest in partnering with a private equity fund to expand its housing finance operations; Group Chairman Rashesh Shah mentioned potential investors during a November earnings call.
Carlyle’s India head, Amit Jain, indicated earlier this year that the firm aims to increase its investment sizes in India, seeking majority stakes in companies to build consolidated business platforms. Over its 25-year history in India, Carlyle has invested approximately $8 billion.
