UAE-backed investors plan 10–12% stake buy via secondary deal in Blackstone-backed firm

Mumbai, July 28, 2025 An investment vehicle backed by Abu Dhabi’s sovereign fund ADQ and Sheikh Tahnoon bin Zayed Al Nahyan is in advanced talks to invest in Aadhar Housing Finance. Investors value the proposed deal at $200–225 million (₹1,750–2,000 crore).Aadhar is a Blackstone-backed affordable housing finance company. The investors will make the investment through a secondary share sale. Furthermore, the fund aims to acquire a 10–12% stake, according to people familiar with the matter.

The move reflects a broader global trend. Sovereign and institutional investors are increasingly targeting Indian financial services.As a result, they invest in the sector because of its steady returns and regulatory stability. This new capital will flow through a continuation fund. The structure enables long-term investment beyond typical fund life cycles.

Aadhar Housing Finance, known for catering to low-income borrowers, has shown consistent growth. In Q1 FY26, it reported a net profit of ₹237 crore, up 18.5% year-on-year. The company reported a net interest income (NII) of ₹428 crore, marking a 22% increase. In addition, its assets under management (AUM) rose to ₹26,524 crore, up 22% from last year.

Sheikh Tahnoon, UAE’s national security adviser and ADQ chair, is leading efforts to expand investments in India’s housing finance market. Blackstone, which took Aadhar Housing public in 2024, currently holds a 75.5% stake in the company. Meanwhile, public shareholders own the remaining stake, according to June filings.

The secondary sale shows strong investor confidence in India’s housing finance sector. Investors are especially interested in firms that serve underserved borrowers. Sources say the parties plan to close the transaction next quarter, pending regulatory approvals and final valuations. This proposed investment continues the trend of sovereign wealth funds increasing allocations to stable, income-generating assets in India. Aadhar’s strong financials, low-cost structure, and rural lending focus have made it a key asset in Blackstone’s Indian portfolio.

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