On Tuesday, an arm of Kotak Mahindra Bank announced it had raised $1.25 billion for its second special situations fund.
Funds raised will be used across equity, debt capital and hybrid vehicles across sectors, a statement from Kotak Investment Advisors (KIA), affiliated with private sector lenders, said.
The total target amount for the second fund, which will be based in Gift City, is $1.6 billion.
After deploying $1 billion from the first fund, the second fund will “provide strategic solutions capital to growth and value companies,” it said.
Abu Dhabi Investment Authority, Singapore’s GIC and family office Premji Invest, backers of the first fund, have also committed to funding the second fund.
Eshwar Karra, CEO of Kotak Special Situations Fund, said: “Our investors have renewed their confidence in us by re-increasing their substantial exposure to the second fund.”
Karra said the company expects a capex growth cycle over the next two years, adding that the fund is well positioned to play a part in it.
Kia managing director Srini Srinivasan said the company had raised $3.6 billion from foreign investors for domestic deployment in fiscal 2023 alone, bringing the total funds raised to date to $6.7 billion.