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Carlyle Group is in advanced talks to acquire majority control of Nido Home Finance, part of Edelweiss Financial Services-housing-finance business. The proposed deal includes an initial investment of about USD 300 million, though no binding agreement has been reached. The move reflects rising global private-equity interest in India's mortgage market, driven by growing home-loan demand in major and emerging cities. Nido has been seeking a strategic partner to strengthen its capital base and expand in affordable and mid-income housing. For Carlyle, the talks signal a return to housing finance after recent exits from PNB Housing Finance and Yes Bank, aligning with its strategy of pursuing larger, controlled investments in high-growth sectors.
Carlyle Group is said to be in detailed discussions to acquire majority control of Nido Home Finance Ltd., which currently operates under Edelweiss Financial Services' housing-finance vertical. People familiar with the matter indicated that the transaction under evaluation involves an initial capital infusion of roughly USD 300 million. The negotiations, carried out discreetly, have not yet produced any binding agreement, and both parties are continuing to assess commercial and regulatory parameters. Advertisement
The potential deal aligns with the growing interest of global private-equity firms in India's mortgage-lending landscape, with notable players such as Blackstone and Sumitomo Mitsui Financial Group also expanding their financing portfolios in the country. Market participants suggest that rising demand for home loans across Tier-I and emerging urban centres has elevated investor appetite for retail credit platforms with scalable operations.
Nido Home Finance has been seeking a strategic partner for some time, and Edelweiss had previously indicated during an earnings interaction earlier this past month that discussions with private-equity investors were underway. The company has been looking to strengthen its capital base to support expansion across affordable and mid-income housing segments.
For Carlyle, the move represents a shift back towards India's housing-finance market after a phase of strategic exits. Earlier this year, the firm divested its decade-long stake of 10.44% in PNB Housing Finance, realising approximately INR 2,712 crore. It had also completed its exit from Yes Bank, marking a broader withdrawal from previous minority-stake positions in financial services. Industry observers believe that the latest negotiations indicate Carlyle's renewed inclination to pursue majority-ownership platforms rather than passive investments.
Carlyle's India leadership has previously expressed a preference for deploying larger capital blocks into controlled structures, a strategy that reflects the fund's focus on building influential positions across high-growth segments. Over the past 25 years, Carlyle has invested nearly USD 8 billion across Indian industries ranging from healthcare to technology and financial services.
Source: Bloomberg
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