Washington-based private equity giant Carlyle Group is negotiating to acquire a majority stake in Mumbai-based Nido Home Finance Ltd, owned by Mumbai-based Edelweiss Financial Services, with an initial commitment of USD 300 mn, Bloomberg reports. Talks are ongoing and no definitive agreement has been reached. If completed, the agreement would add Carlyle to a growing list of large global and foreign investors backing India’s rapidly expanding housing-finance sector, alongside Blackstone and Sumitomo Mitsui Financial Group.

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Edelweiss’s chairman has signalled openness to external equity to scale its home-loan business, according to an earnings call in September. Carlyle, which has invested roughly USD 8 bn in India over the past 25 years, said it aims to make larger investments and build platforms across financial services. Carlyle also sold its decade-old stake in PNB Housing Finance as well as in Yes Bank earlier this year, Economic Times reports.

Background: India’s housing-finance market has become a key target for private capital in recent years, driven by rising home demand, under-explored mortgage credit, and strong valuation potential. Large global funds including Sumitomo Mitsui Financial Group and Blackstone have invested in Indian home-loan lenders such as Kolte-Patil Developers and Aadhar Housing Finance.

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