Kotak Investment Advisors (KIAL), a wholly-owned subsidiary of Kotak Mahindra Bank, has launched a Special Situations Fund to target a range of non-performing loan (NPL) opportunities in India. The fund is being anchored by a $500 million commitment from a wholly-owned arm of the Abu Dhabi Investment Authority (ADIA).
The Special Situations Fund will target both pre-stress and distressed opportunities, with a key focus on providing financial support to pre-stress businesses to prevent them from entering insolvency, the company said in a statement.
The fund is structured as an alternative investment fund under SEBI regulations.
The company said the Fund will be managed by the Alternate Asset Management AMC — KIAL and will be led by Eshwar Karra, former CEO of Phoenix ARC.
Srini Sriniwasan, Managing Director & CEO, KIAL, said, “The Kotak Special Situations Fund has been created to address the NPL issue and market dislocation by providing much needed capital and momentum to finding resolutions in both pre-stress and distressed situations.”