Special Situations Fund: Kotak Mahindra Bank arm raises $1.25 billion

A Kotak Mahindra Bank arm on Tuesday announced that it has raised $1.25 billion for its second special situations fund. The money raised will be deployed 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, which will be domiciled in the GIFT City, is $1.6 billion. The second fund, which comes after the deployment of $1 billion in the first fund, will "provide strategic solution capital across growth and value companies", it said.

Abu Dhabi Investment Authority, Singapore's GIC and family office Premji Invest, who were among the backers for the first fund, have committed money for the second fund as well.

"... Our Investors have reposed faith in us by re-upping their large commitments in the second fund," Kotak Special Situations Fund chief executive Eshwar Karra said. Karra said 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. 

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