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Alternative Investment

The Capital Quest | Kotak’s real estate PE arm gets ADIA as anchor for $1 bn fund

Kotak Investment Advisors Ltd (KIAL) said Tuesday it has secured an anchor investment of $500 million from Abu Dhabi Investment Authority (ADIA) for its 13th real estate fund, which is aiming to scoop up $1 billion platform targeting opportunistic real estate investments in India.

This comes barely five months after the alternative investments arm of Kotak Mahindra Bank said ADIA had backed its $590 million 12th real estate fund chasing deals in the commercial office projects.

With the new fund, KIAL has now raised, managed or advised more than $3.3 billion under its real estate fund series.

Vikas Chimakurthy, CEO, Kotak Realty Fund said, “This is an opportunistic fund which can invest across various real estate asset classes and capital stack i.e., both debt and equity. The fund will primarily target investments in residential real estate. With the first close of this Fund, KIAL has raised around $1.5 billion in real estate across multiple strategies in around one and a half years.”

Mohamed AlQubaisi, Executive Director of the Real Estate Department at ADIA, said, “This agreement extends our existing and longstanding relationship with Kotak. The new platform is primarily targeted at the significant demand for housing in India, which is driven by sustained economic growth and a shortage of urban housing clusters.”

The new fund extends the partnership between Kotak and ADIA. The sovereign wealth fund of the Gulf emirate had previously also backed a stressed assets fund managed by Kotak.

KIAL was set up in early 2005 to bring a sharper focus to Kotak’s alternate assets practice. It has so far raised or managed over $6.8 billion across different asset classes including real estate funds, private equity funds, infrastructure funds, special situations fund, listed strategies and investment advisory.

As first reported by The Capital Quest, Kotak’s new infrastructure investment fund has separately neared the halfway mark with new LPs.

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