Carlyle to Buy Majority Stake in Edelweiss’ Housing Finance Arm Nido

American private equity firm Carlyle Group has announced plans to buy a majority stake in Nido Home Finance Limited (Nido), a wholly owned subsidiary of Edelweiss, in a deal worth nearly $400 million. Under the transaction, investment funds linked to Carlyle Asia Partners will invest ₹2,100 crore ($230 million) in Nido, including the purchase of a 45% stake from Edelweiss and a fresh equity infusion of ₹1,500 crore ($165 million).

The transaction aims to create a win-win opportunity for all stakeholders by bringing in additional capital and operational expertise to better serve the affordable housing segment, the companies said in a statement on Tuesday.

The deal is subject to regulatory approvals from the Reserve Bank of India, National Housing Bank, Competition Commission of India and other customary conditions. AZB & Partners acted as legal advisers to Edelweiss, while Trilegal advised Carlyle.

Established in 2010, Nido provides home loan solutions across the affordable housing and mass-market segments. It operates a large branch network serving over 800 talukas (sub-districts) across India and currently manages assets under management of ₹4,804 crore (approximately $530 million).

“The investment by Carlyle in Nido is a key milestone and brings in a high-quality, long-term partner to accelerate Nido’s next phase of growth. At a time when India’s housing finance sector is witnessing strong structural demand, supported by rising affordability and deeper access to formal credit, Nido is well placed to participate meaningfully in this opportunity,” said Rashesh Shah, Chairman and Managing Director, Edelweiss.

For Carlyle, the investment underscores its continued commitment to India’s high-growth housing finance sector and builds on more than two decades of experience and a strong track record in India’s financial services space. Carlyle has previously invested in housing finance firms such as PNB Housing Finance Limited and Housing Development Finance Corporation. Aditya Puri, Senior Adviser to Carlyle in Asia and former CEO and Managing Director of HDFC Bank, will also participate as an investor, highlighting the strategic importance of the deal.

“We are thrilled to partner with Edelweiss to support the next phase of Nido’s growth journey. Housing remains a critical national priority for India, and we have strong conviction in the growth potential of the housing finance industry. We look forward to leveraging our experience in financial services to help Nido scale its operations and meet the expanding needs of affordable housing in rural and semi-urban markets,” said Sunil Kaul, Partner and Asia Financial Services Sector Lead, Carlyle.

Nido Home Finance reported a profit after tax of ₹19 crore on total income (net of interest expense) of ₹200 crore in fiscal 2025, compared with a profit after tax of ₹19 crore on total income of ₹165 crore in the previous fiscal. In the first quarter of fiscal 2026, the company posted a profit of ₹4 crore, up from ₹1 crore in the corresponding period a year earlier.