Kotak reaches final close of special situations fund at $1b

Photo: Reuters

Kotak Special Situations Fund, that looks to target non-performing asset (NPA) opportunities, on Monday, announced its final close with total commitments of $1 billion from investors.

The fund, launched in February 2019, is anchored by a $500 million pledge from Abu Dhabi Investment Authority (ADIA). It will be managed by Kotak Investment Advisors Ltd.

“We have a robust pipeline of transactions coming through as structured credit solutions as well as potential settlement of NPLs under the new RBI dispensation. This is in addition to the opportunities that arise out of the IBC process as well. We believe there is a significant opportunity to provide bespoke financing in a range of situations,” said Eshwar Karra, chief executive officer of Kotak Special Situations Fund.

Kotak Investment Advisors, a wholly owned subsidiary of Kotak Mahindra Bank Ltd, was set up in 2005 with its first private equity fund. So far, the business has raised $3.8 billion across different asset classes, including private equity funds, real estate funds, infrastructure funds, the special situations credit fund and listed equities.

“The Kotak Special Situations Fund has been closed at an opportune time for us. We have a flexible investment mandate enabling us to provide much needed capital to address the short term financial dislocation in the market as well as long term capital to address the NPL (non-performing loan) issue,” said Srini Sriniwasan, managing director and CEO of Kotak Investment Advisors Ltd.

This article was first published on livemint.com