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Kotak Plans to Raise to Rs 1,500 Crore to Invest in PE

Kotak Mahindra Bank plans to raise up to Rs 1,500 crore funds to invest in private equity (PE) and venture capital funds.

“Kotak India Alternate Allocation Fund (KIAAF) is introduced as a ‘fund of funds and is targeting to raise Rs 750 crore with a greenshoe option of another Rs 750 crore,” Kotak Investment Advisors (KIAL) said.

As per KIAL’s statement, “it will invest across PE/VC funds in multiple sectors, including consumer, technology, healthcare and financials, and the money invested by it will be deployed for taking equity stakes in companies across multiple stages.”

“Lack of knowledge and information availability in this asset class makes it difficult to make an informed choice (for investors). Diversification of risk across managers is tough due to high minimum investment requirements,” KIAAF’s fund manager Nidhi Chawla.

KIAL’s managing director Srini Sriniwasan said, “some of the marquee fund managers have been inaccessible to domestic investors as they raised only offshore capital or had high minimum ticket investment requirements.”

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