Kotak Plans to Expand Into Venture Capital, Venture Debt and Buyouts

Kotak Investment Advisors Limited (KIAL), an alternative assets division of the Kotak Mahindra Group, plans to expand to venture capital, venture debt, and buyouts, a senior executive said.

India's buyout space has several existing companies around the world, including Kalaari Capital, Everstone Capital, Blackstone, Carlyle Group, KKR & Co,  Warburg Pincus, and Advent International, venture capital investment has also gained momentum over the last five years.

KIAL has not yet finalized plans to enter the buyout and venture debt businesses. Kotak Investment Division will also launch a 12th "special" real estate fund focused on additional infrastructure funds, angel funds, logistics, and office commercial spaces,  Srinivasan said.

KIAL has already invested Rs 70 crore in 14 startups through its own fund in the healthcare and healthcare sectors. "We have applied for a Rs 150 crore angel fund for such an investment and will launch it soon," it said.

KIAL is currently in the process of raising a second Strategic Situation Fund with a corpus of $650 million to $1 billion by October. In May, it announced plans to launch a private loan fund of Rs 1,000 crore.