Mumbai, Maharashtra, India
Bucking the recent financial turmoil and capital scarcity prevalent in the Indian and global markets, Kotak Investment Advisors Limited (KIAL), a subsidiary of Kotak Mahindra Bank, today announced the first & final closure of their third Private Equity fund - Kotak India Growth Fund II with a total commitment of USD 440mn. The Fund has been raised within a period of less than three months from the client base of Kotak Mahindra, both institutional investors and high net worth individuals. KIAL, which focuses exclusively on managing the Alternate Assets business of the Kotak Mahindra Group, now has Assets Under Management USD 1.4bn split almost evenly between two asset classes namely - Private Equity and Realty Funds.
On the occasion, Mr. C. Jayaram, Executive Director - Kotak Mahindra Bank said, "People across the globe desire to be a part of the Indian growth story and we wished to create an opportunity for Indians to take advantage of their own country's surging economy. The huge corpus that the fund has mopped up is a testimony to the trust and credibility associated with the Kotak brand. It also illustrates the group's strong captive client base and the ability to leverage cross-selling of home grown products"
As part of KIAL, Kotak Private Equity Group (KPEG) led by Nitin Deshmukh, CEO Private Equity will now manage three funds across two strategies - Growth Capital (India Growth Fund I & India Growth Fund II) and Venture Capital for Life Sciences (Kotak India Venture Fund - I). KPEG invests in companies across a broad range of industries seeking capital for business expansions, acquisition financing and buyout transactions typically investing between USD 15mn and 40mn depending on the nature of the company's business, stage of growth and its financing requirements.
Kotak India Growth Fund I, has invested in companies such as Home Solutions - a subsidiary of Pantaloon Retail Ltd which is India's fastest growing chain of home improvement stores; INX Media- the media entertainment company , DRS Logistics - a leading player in the 3PL logistics space in India, BFW - the largest manufacturer of CNC machines in India; SIRO Clinpharm- India's largest local full service Clinical Research Services company, Metahelix - an Ag-Biotech company, ICOMM Tele- India's largest telecom tower manufacturing company and BVG India- India's leading Facilities Management Service provider among others.
Elaborating on the Fund, Mr. Nitin Deshmukh, CEO - Kotak Private Equity Group said, "This is the best time to be sitting on investible cash. The Indian economy has been growing at a very healthy rate during the last couple of years and it's continued growth is expected to throw up several opportunities in the mid market space in high growth segments of Global Manufacturing, Domestic Consumption and Infrastructure led Services. The recent capital market dynamics are also expected to help moderate investment valuations"
About Kotak Private Equity Group (KPEG) :
As part of KIAL, Kotak Private Equity Group (KPEG) is focused on helping emerging corporates and mid-size enterprises evolve into tomorrow's industry leaders. KPEG provides these companies a combination of equity capital, strategic support and other value added services, playing a pro-active role with the entrepreneur in building the business.
KPEG is led by Nitin Deshmukh, who has put together an experienced investment team with a successful track record in venture capital / private equity investments. The other partners in the team are K.V. Ramakrishna and Vamesh Chovatia. The three partners of the Fund collectively bring in over 55 years of industry and private equity vestment experience with strong deal origination and networking capabilities.
About Kotak Investment Advisors Ltd:
Kotak Investment Advisors Limited (KIAL), a subsidiary of Kotak Mahindra Bank focuses exclusively on managing the Alternate Assets business of the Kotak Mahindra Group. While the Kotak Group has been associated with Private Equity investments since 1997, to bring a sharper focus to the Group's Alternate Assets strategy, Kotak Mahindra Bank initiated its first structured third party Private Equity Fund in early 2005. Since then, the Alternate Assets business of the Group has grown to over USD 1.40 billion under management across two asset classes namely - Private Equity & Realty Funds, both led by independent investment teams.
Source: Kotak Investment Advisors Limited (Business Wire India)
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