CPP Investments, has committed Rs 1,850 crore to the first close of Kotak Infrastructure Investment Fund (KIIF), according to CPP Investments’ second quarter financial results.
KIIF, a subsidiary of Indian billionaire Uday Kotak’s Kotak Investment Advisors Ltd (KIAL), will provide senior and secured financing to India’s operating infrastructure projects.
This is most likely KIAL’s second infrastructure fund, the size of which has yet to be determined. Kotak declined to comment on the fund’s size, first close, or other investors.
KIAL, which manages a $5.7 billion book across asset classes including private equity, real estate, infrastructure, and stressed assets/special situations vehicles, closed its first infrastructure fund with a corpus of $250 million in 2013. In the mid-sized infrastructure market, it typically invests $15-18 million per transaction.
CPP Investments’ investment is part of its credit portfolio. Globally, CPP Investments’ net assets increased marginally by $6 billion to $529 billion in the second quarter ending 30 September FY23, compared to $523 billion at the end of the previous quarter.
The Fund’s quarterly results were harmed by broad declines in global public and private equity markets, as well as fixed income markets, according to the company.
CPP Investments, based in Toronto, Canada, manages a global portfolio of public and private equities, real estate, infrastructure, and fixed income.
Among its India investments, the pension fund manager made a Rs 357.5 crore (US$40 million or C$60 million) investment in National Highways Infra Trust, an infrastructure investment trust sponsored by the National Highways Authority of India, during the second quarter.
In India, the pension fund investor has exposure to various asset classes such as real estate, private equity, and infrastructure.
CPPIB made a $350 million credit investment in ed-tech startup Eruditus in March. Moreover, it has also made equity investments in several Indian technology companies such as Flipkart, Byju’s, Daily Hunt’s parent Verse Innovations and will continue to allocate capital to such investments, Graham said.
In distressed assets space, CPP Investments has partnered with India Resurgence Fund, a joint venture between Piramal Enterprises and Bain Capital. The Canadian investor also makes bets in mid-market credit segment through the India credit fund of Baring Private Equity Asia.
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