Kotak Mahindra Bank arm raises $1.25 billion for 2nd special situations fund

29 Mar 2023 , 01:43 PM

An arm of Kotak Mahindra Bank announced on Tuesday that it has raised USD 1.25 billion for its second special situations fund. The company will deploy funds in equity, debt capital and hybrid instruments across sectors, a statement from Kotak Investment Advisors (KIA), the arm of the private sector lender, under which the fund comes, said.

The overall targeted amount for the second fund is $1.6 billion, which will be domiciled in the GIFT City. The fund will provide strategic solution capital across growth and value companies. 

The backers of first fund, Abu Dhabi Investment Authority, Singapore’s GIC and family office Premji Invest have committed to invest in the second fund also.

Kotak Special Situations Fund chief executive Eshwar Karra said, “… Our Investors have reposed faith in us by re-upping their large commitments in the second fund.” He added, the company expects a capital expenditure growth cycle over the next two years and added that the fund is well placed to play its part in the same. 

KIA’s managing director Srini Sriniwasan said the company has raised $3.6 billion from foreign investors to be deployed domestically in FY23 alone, and the overall funds raised till now goes up to $6.7 billion.