India’s Kotak Investment Advisors launches pre-IPO fund, looks to raise $274m

Photo: Mint

Kotak Investment Advisors Ltd (KIAL), the alternative assets arm of the Kotak Mahindra Group has launched a pre-IPO fund — the Kotak Pre IPO Opportunities Fund.

The fund, a category II Alternative Investment Fund (AIF) has been positioned as an ‘India-focused, late-stage fund to invest in high-quality companies with a strong moat of technology.’

AIFs have a minimum investment ticket of 1 crore. Investing in pre-IPO companies has garnered investor interest in India of late with high-profile IPOs such as Barbeque Nation hitting the market and others such as Paytm slated to go public in the near future.

According to the investor presentation for the fund, it will aim to raise 1,000 crore with another 1,000 crore as greenshoe option. It will have a tenor of 5 years from the final close. It will charge a fee of 1.8% for investments of less than 10 crore with 1.5% for the direct option of such investments.

For higher investments charges will be lower at 1.5% for the regular option and 1.2% for the direct option. The direct option is for advisory clients of KIAL. Apart from this fee, the fund will also charge a performance fee (carry) of 20% of profits above a hurdle rate of 10% pre tax.

In other words, the fund must deliver a return of more than 10% for the performance fee to kick in. For investments greater than or equal to 10 crore, carry will be 15%.

The pre IPO fund will target investments ranging from 25 crores to 200 crores and have an average holding period of around 3 years. It will target ‘late stage high quality companies’ according to its presentation in sectors like fintech, consumer tech, ed tech, health tech and software as a service.

B Amrish Rau, CEO of Pine Labs, Haresh Chawla, Partner, True North and Nitin Deshmukh, Advisor, Kotak Private Equity will act as advisors to KIAL for the fund is a non-binding capacity, the presentation added.

The article was first published on livemint.com.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.