Kotak Mahindra Group plans to launch a $300-million private equity (PE) fund. The fund will raise capital from domestic and international investors alike for investing in infrastructure projects in India. Sumitomo Mitsui Banking Corporation (SMBC) and Brookfield Asset Management will participate as cornerstone investors or significant early investors. The three entities — Kotak, SMBC and Brookfield — will contribute up to 22.5% of the fund’s capital.
SMBC, one of the largest banks in Japan, is a leading infrastructure advisor and project financier. Brookfield is a global real estate, renewable power and infrastructure asset owner, operator and manager, with assets under management worth over $100 billion.
The fund will primarily invest in power generation/ transmission, transport and infrastructure projects and in infrastructure-holding companies.
As PE investments in infrastructure gain momentum, more institutions are busy raising funds, with a focus on infrastructure. With a target of $750 million, ICICI Venture has launched an infra fund. Macquarie-SBI Infrastructure Fund, run by Macquarie SBI Infrastructure Management, is also in the process of closing its $1.2-billion fund.
While Kotak Investment Advisors will manage the domestic fund, Kotak Mahindra (UK) will manage the offshore fund. The former currently manages and advises on nearly $1.2 billion of alternate assets. C Jayaram, executive director, Kotak Mahindra Bank, said, “Individually and collectively, the three entities strongly believe in the long-term growth prospects of the infrastructure sector in India.”
Kotak has nominated Suman Saha, former executive director and co-head (equity product group), Kotak Investment Banking, to head the investment team.
