Kotak Investment Advisors Secures $500 Mn Anchor Investment From ADIA
Kotak Investment Advisors (KIAL), the investment arm of Kotak Mahindra Bank, has secured an anchor investment to the tune of $500 million from a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) for its 13th Real Estate (RE) Fund, which is a $1 billion platform targeting opportunistic real estate investments in India.
With this new fund, KIAL has raised, managed or advised more than $3.3 billion under its real estate fund series, the company said in a statement on Tuesday.
“This is an opportunistic fund that can invest across various real estate asset classes and capital stack i.e. both debt and equity. The fund will primarily target investments in residential real estate,” said Vikas Chimakurthy, CEO, Kotak Realty Fund.
With the first close of this Fund, KIAL has raised around $1.5 billion in real estate across multiple strategies in around one and a half years, he added.
As an India-focused alternate asset manager, Kotak has played a key role in attracting global capital to various alternate asset investment strategies in India, said Srini Sriniwasan Managing Director of KIAL.
“Kotak’s Real Estate Investment practice has been a consistent performer over 17 years across cycles and strategies. This track record has enabled us to emerge as a leading home-grown alternate asset manager with a significant Global LP base who have reposed faith multiple times with Kotak with significant Re-up participation in successor funds,” Sriniwasan added.
According to Mohamed Al Qubaisi, Executive Director of the Real Estate Department at ADIA, “The new platform is primarily targeted at the significant demand for housing in India, which is driven by sustained economic growth and a shortage of urban housing clusters.”
