Kotak India Alternate Allocation Fund to raise up to Rs1500 crore for investing in PE, VC firms

3 Aug 2022 , 07:49 AM

An affiliate of Kotak Mahindra Bank plans to raise up to Rs 1,500 crore to invest in venture capital and private equity firms. The Kotak India Alternate Allocation Fund (KIAAF), a “fund of funds,” is being launched, according to Kotak Investment Advisors (KIAL). It aims to collect Rs 750 crore with a greenshoe option of an additional Rs 750 crore.

According to a statement from KIAL, it would invest through PE/VC funds in a variety of industries, including consumer goods, technology, healthcare, and financial services. The funds will also be used to acquire equity shares in firms at various stages of development.

As per the statement, the private sector lender’s alternate assets division would also look into co-investment options to acquire direct equity holdings in firms alongside the investee PE/VC funds. Under the guidelines put forth by financial markets regulator Sebi, KIAAF is being established as an Alternative Investment Fund (AIF).