Premji Invest, ADIA commit ₹9,900 cr for new Kotak AIF
1 min read . Updated: 23 Feb 2023, 11:21 PM IST
PremiumUnder the first fund, ADIA committed around 50% of the corpus at $500 million, while GIC infused $250 million and the rest came from Premji Invest and Kotak Group.
Mumbai: The sovereign wealth funds of Abu Dhabi and Singapore and Premji Invest plan to invest around $1.2 billion ( ₹9,900 crore) in Kotak Group’s new alternative investment fund (AIF), said two people aware of the development.
Under the fund, Kotak aims to scoop up as much as $1.5 billion (about ₹12,000 crore), the persons added.
Abu Dhabi Investment Authority (ADIA), which is an existing investor, Singapore’s GIC and Premji Invest, are understood to have made anchor commitments of around $1.2 billion, higher than the previous fund, both the persons said on condition of anonymity.
With the fresh commitments, the billionaire banker Uday Kotak-led group’s alternative investment arm Kotak Investment Advisors Ltd (KIAL) is set to mark the first close of its second special or “strategic" situations fund following the full deployment of its previous $1 billion Kotak Special Situations Fund (KSSF) launched four years ago.
The purpose of the fund was to participate across the credit life cycles of companies and projects by providing unique solutions for financing gaps among companies across sectors.
Under the first fund, ADIA committed around 50% of the corpus at $500 million, while GIC infused $250 million and the rest came from Premji Invest and Kotak Group.
With the new fund, the homegrown investor will revise its focus in larger strategic and growth opportunities away from distressed deals, to raise a “Strategic Situation fund" as part of its second and larger fund, bringing in newer institutional investors, VCCircle had reported last year.
This week, KSSF marked its full deployment of $1 billion first fund, through which it has made a total of 14 investments concluding with its ₹1,070 crore (about $129 million) fund infusion in Kiran Mazumdar Shaw-led Biocon Ltd. Its maiden investment in Jindal Stainless Ltd was in January 2020.
Its bets include listed cement player Sanghi Industries Ltd, Sify Infinit Spaces Ltd, Gold Plus Glass Industry Ltd, logistics firm TVS Supply Chain Solutions, Nuvoco Vistas Corp Ltd, and stressed HKR Roadways owned by a consortium led by Gayatri Group.