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The Kotak Mahindra group today said that it raised as much as $90 million or (Rs 490 crore) for its India Infrastructure private equity fund. This is the first close of this fund.
In addition to Kotak itself, the fund received commitments from Sumitomo Mitsui Banking Corporation (SMBC) of Japan and an affiliate of Brookfield Asset Management, Japan Bank for International Co-operation (JBIC), and yet another unnamed insurance group. Kotak, SMBC and Brookfield have committed around Rs 275 crore.
The fund will invest in companies engaged in power generation or transmission, roads, ports, airprots, water treatment and supply, waste management and gas transmission and distribution in India. Kotak Mahindra's Singapore branch is the investment manager of the fund.
“This is an important milestone for the Kotak Mahindra group and we are now in a position to address a significant market opportunity as well as add a key platform to our existing alternate assets business,” said C Jayaram, joint managing director, Kotak Mahindra bank.
Infrastructure private equity funds for India were floated by many banks and financial institutions in 2008-2009. SBI Macquarie, UK-based private equity fund 3i, and Morgan Stanley had raised funds which were in excess of $1 billion each. Some of these funds are at the end of their investment cycle.
