Kotak Alternate Asset Managers to raise Rs 1,600 cr via healthcare PE fund

Billionaire Uday Kotak-backed Kotak Alternate Asset Managers Ltd. plans to raise as much as Rs 1,600 crore ($190 million) through its latest healthcare private equity fund, tapping growth opportunities in life sciences and diagnostics among others. 

The fund has a target of 8 billion rupees, and can collect an additional 8 billion rupees through what is referred to as a greenshoe option, according to an investment document seen by Bloomberg News. It plans to invest between 250 million rupees to 500 million rupees of equity in such companies each, the document showed.

 

The Mumbai-based firm has begun pitching the new fund through global and local roadshows including in New York to attract investors, according to Ashish Ranjan, a fund manager at the firm. The fund aims to close in the next two quarters, he added.

 

“We will deploy the capital in healthcare companies that are building for the next 10 years,” Ranjan said, adding that the sector has exponential opportunities given India’s focus on it. 

 

The value of India’s hospital industry is expected to reach 18.35 trillion rupees by 2027 and is growing at a pace of around 18.24%, according to government data.   (Disclosure: Entities controlled by the Kotak family have a significant holding in Business Standard Pvt Ltd)