The lure of infrastructure finance opportunities is prompting more players to set up dedicated funds. The Kotak Mahindra Group is now looking at launching a $1-billion infrastructure fund, for which it could tie up with a global player.
It is also looking at options of setting up a hedge fund type structure from one of its overseas arms to invest in India.
The group had last year moved its private equity and real estate funds under Kotak Investment Advisors (KIAL). This alternate assets division already has assets under management of nearly $1.6 billion, which would increase to around $2.5-3 billion in a year’s time if the infrastructure fund gets launched.
It is also in the process of raising funds from overseas markets for its private equity and real estate funds. KIAL, which came into effect from October 1, 2007, had posted a net profit of Rs 13.5 crore for the year ended March 2008.
Kotak Mahindra Bank executive director C Jayaram said, “By the end of July, we will have a management team in place for the infrastructure fund.
It will be led by Suman Saha and we are in the process of hiring two seniors as well. We will speak to a number of global funds for partnering or for co-investing. The fund should go in for the first close by the end of 2008 or early 2009.”
Source: Economic Times