BENGALURU : Kotak Funding Advisors Ltd (KIAL) on Tuesday marked the shut of Kotak Infrastructure Funding Fund (KIIF), a category-II alternate funding fund (AIF) with a corpus of ₹6,000 crore.
The fund has already obtained commitments of ₹5,328 crore from anchor buyers together with Canada Pension Plan Funding Board (CPP Investments) and the Asian Infrastructure Funding Financial institution (AIIB).
The fund will put money into working infrastructure tasks by offering senior, secured credit score, the corporate mentioned in an announcement.
“KIIF is a differentiated providing in an in any other case crowded infrastructure investing market dominated by fairness buyers,” mentioned Suman Saha, chief government, KIIF. “It makes an attempt to measure and worth danger higher than fairness, and can ship superior danger adjusted returns to its restricted companions. It should present credit score options to harassed infrastructure belongings, in addition to capital for progress.”
The funding from AIIB is predicted to assist enhance the “mobilization of progressive danger capital from institutional buyers,” mentioned Dongik Lee, director normal, banking division, AIIB.
“India’s infrastructure sector has many belongings with working monitor information in want of progressive credit score options. With the sectoral experience and franchise strengths of KIAL and Kotak Group, KIIF is predicted to be a significant new supply of liquidity which enhances the traditional capital accessible within the sector,” he added.
Arrange in 2005, KIAL is the alternate asset arm of Kotak Mahindra Group and has raised/managed/suggested in mixture over $6.8 billion throughout asset lessons together with actual property, personal fairness, infrastructure, particular conditions fund, and funding advisory.
“We’re an enormous believer in India and are constructing a multi- asset class alternate asset administration enterprise of scale, with an India focus,” mentioned Srini Sriniwasan, managing director, KIAL. “This fund will play a key position in fixing the steadiness sheet correction points in infrastructure belongings at a time when different sources of capital have dried up.”
KIAL has been on a fundraising spree launching a number of funds throughout segments. This 12 months, VCCircle reported that the corporate can also be set to foray into enterprise capital, enterprise debt and buyout house.
Final month, KIAL obtained commitments from a unit of Abu Dhabi Funding Authority (ADIA) for its thirteenth actual property fund sized $1 billion.
Earlier this 12 months, Kotak Pre-IPO Alternatives Fund introduced the primary shut at ₹1,386 crore and KIAL can also be within the means of elevating its second new fund.
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