Kotak Investment, Allianz Group tie-up for India's private credit market

Kotak Investment Advisors (KIAL), the fund manager of Kotak Mahindra Group and Allianz Investment Management — the investment management arm of Germany’s Allianz Group — said on Monday that they have tied up to invest in India’s private credit market.

In February 2021, Allianz made its maiden investment of $150 million in KIAL’s 11th real estate debt fund that achieved a closure of $380 million. KIAL’s real estate fund primarily focuses on fin­ancing early- and late-stage projects across India.

Allianz’s total private credit investments in the country is worth about $650 million and it is looking to increase it to $1 billion in 2021, KIAL said. A number of global investors such as Ca­nada’s CPPIB, Ontario Tea­c­hers’ Pe­n­sion Plan and Baring Private Equity are betting big on private credit in the country.

Allianz had tied up with Shapoorji Pallonji’s PE arm to invest in commercial properties earlier. KIAL has raised and managed funds worth $4.66 billion so far.

Uday Kotak, managing director (MD) and chief executive officer (CEO), Kotak Mahindra Bank, said, “Kotak Investment Advisors’ partnership with Allianz is indeed momentous not only for us, but also for the Indian alternative asset management industry. As a growth economy, Indian economy’s capital needs are spread across the spectrum of equity and credit. Allianz brings with it the much-wanted large package of dry powder and KIAL has the expertise in identifying the right opportunities as and when they arise in India.”

Ritu Arora, CEO & CIO Asia, Allianz Investment Man­agement Asia, said, “We are pleased to enter into this long-term partnership with the Kotak Group. The group is deeply ingrained in the Indian credit markets and both groups are committed to strengthening this partnership.”

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