KIAL Closes Its Infra Investment Fund With A Corpus Of Rs 6,000 Cr


Kotak Investment Advisors Limited (KIAL) closed the Kotak Infrastructure Investment Fund (KIIF), a category-II alternate investment fund (AIF) with a corpus of Rs 6,000 crore, on Tuesday.

Anchor investors such as the Canada Pension Plan Investment Board and the Asian Infrastructure Investment Bank (AIIB) have already committed Rs 5,328 crore to the fund.

According to the company, the fund will invest in operating infrastructure projects by providing senior, secured credit.

The company added, “KIIF is a differentiated offering in an otherwise crowded infrastructure investing market dominated by equity investors,” said Suman Saha, chief executive, KIIF. “It attempts to measure and price risk better than equity, and will deliver superior risk adjusted returns to its limited partners. It will provide credit solutions to stressed infrastructure assets, as well as capital for growth.”

KIAL, established in 2005, is Kotak Mahindra Group’s alternative asset management and investment advisory business. Over $6.8 billion has been raised/managed/advised across various asset classes, including real estate, private equity, infrastructure, special situations funds, and investment advisory, all led by independent investment teams.

KIAL received commitments last month from an Abu Dhabi Investment Authority (ADIA) subsidiary for its 13th $1 billion real estate fund. Canada Pension Plan Investment Board (CPP Investments), Canada’s largest pension fund manager, has also committed Rs 1,850 crore to the first close of Kotak Infrastructure Investment Fund (KIIF).

Kotak Pre-IPO Opportunities Fund announced its first close earlier this year at Rs 1,386 crore, and KIAL is also in the process of raising its second new fund.

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