Kotak Investment Advisors said on Monday it has achieved the final close of the Kotak Special Situations Fund with aggregate commitments of $1 billion. The fund was launched in February 2019 and is anchored by a $500-million commitment from a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA). Kotak Special Situations Fund makes strategic investments in companies with a sector-agnostic approach.
The fund invests across sectors to tap the stressed assets opportunity in India. It has expertise in sectors like real estate, healthcare, infrastructure, power, consumer, industrials, information technology and financial services. Its investments typically involve a combination of debt, equity and mezzanine instruments, according to its website. The fund invests in stressed assets, taps IBC opportunities and special situations that include situations like investor take-out financing, group restructuring and promoter financing as well as asset acquisitions.
Srini Sriniwasan, MD & CEO, Kotak Investment Advisors, said the Kotak Special Situations Fund has been closed at an opportune time for the firm. “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 issue,” he said. Eshwar Karra, CEO at Kotak Special Situations Fund, said they 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,” he said.