The Kotak Mahindra group announced the first close of its infrastructure private equity fund on raising commitments of about Rs 490 crore.
In addition to Kotak, commitments have been received from the Sumitomo Mitsui Banking Corporation, Japan (SMBC), an affiliate of Brookfield Asset Management (Brookfield), Japan Bank for International Cooperation (JBIC) and a leading insurance group, a statement from the group said.
The fund, Core Infrastructure India Fund Pte Ltd, will invest in companies engaged in power generation/ transmission, transportation (roads, ports and airports), water treatment and supply, waste management and gas transmission, besides distribution and storage in India.
Kotak Mahindra’s (UK), Singapore branch is the investment manager of the fund.
SMBC, the core financial institution of Japan’s second largest financial services group in terms of market capitalisation, with a significant presence in infrastructure project finance globally and Brookfield, a global alternative asset manager with over $175 billion in assets under management, have participated in the fund as cornerstone investors.
Further, JBIC, the policy financing financial institution of the Japanese Government with a track record of financing infrastructure globally, has committed to the fund. This investment marks its first ever direct commitment to a fund dedicated to financing only Indian infrastructure.
In the first close, Kotak, SMBC and Brookfield have committed over Rs 275 crore. They have also nominated experienced professionals to the investment team and to the investment committee.
C. Jayaram, Joint Managing Director, Kotak Mahindra Bank, said, “This is an important milestone for the Kotak Mahindra group as we are now in a position to address a significant market opportunity as well as add a key platform to our existing alternate assets business.”