Emerging Trends Advisors Co., Ltd.
306/82 Moo.10, Nongprue, Banglamung,
Chonburi 20150 Thailand

Home » India » ADIA to invest $500 million in Kotak’s stressed assets fund

ADIA to invest $500 million in Kotak’s stressed assets fund

Mar 1, 2019 | Emerging Trends Advisors, India

Mumbai: UAE-based sovereign wealth fund Abu Dhabi Investment Authority (ADIA), has committed $500 million to a new distressed fund backed by Kotak  Investment Advisors (KIA), the alternative investments arm of Kotak Mahindra Bank.

The fund will target both prestress and distressed opportunities and also financially support businesses to prevent them from entering insolvency, Kotak said in a press release.

ADIA’s investment comes at a time of geopolitical tension in the subcontinent and reflects the close ties between UAE  and India.

It comes ahead of the two-day meeting of the Organisation of Islamic Cooperation (OIC) in Abu Dhabi, where external affairs minister Sushma Swaraj has been invited as a guest of honour.

Experts said ADIA’s investment was another indication of significant funds looking to invest in India’s vibrant distressed debt market.

The sovereign wealth fund has also invested $500 million in two other real estate funds managed by KIA.

“Institutional investors can play an essential role in building a robust secondary market for nonperforming loans (NPLs) in India.

With a broad mandate to invest across asset types and sectors, our new partnership with Kotak will contribute to this process and help to ease the burden of NPLs on the Indian financial system,” said Hamad Shahwan Al Dhaheri, executive director of the private equities department at the ADIA.

The new distressed fund will be called Kotak Special Situations Fund. “We believe there is a large opportunity for distressed debt in India, especially with the new bankruptcy code in operation. We will also provide high-yield structured credit and specific financing requirements for companies,” said Kotak Investment Advisors CEO Srini Sriniwasan.

Sriniwasan oversees $3.3 billion across different asset classes, including private equity funds, real estate funds, infrastructure funds and listed equities. Each of these funds has a separate CEO. The distressed fund will be headed by Eshwar Karra, former CEO of the Kotak-owned Phoenix ARC, who moved to KIA last month.

Sriniwasan said significant global funds and institutions might also join the fund. “With ADIA’s commitment, we are officially up and running.

There are others who have expressed interest. Foreign investors recognise this opportunity in India,” he said.

Article Source: economic times

Leave a Reply

Login With Emerging Trends Advisors Or Register With Emerging Trends Advisor

Up to 15% Returns on Investment

Fixed return investments fully backed by properties.

*15% p.a. paid at the end of the term on capital gain option*


Submit your email address and a member of our team will contact you shortly. Usual response time is 1-2 hours.

Thai Citizenship Step-By-Step Guide

Thai Citizenship Step-By-Step Guide

Thai Citizenship Step-By-Step Guide: Foreigners with a Thai Spouse Immigration law in Thailand provides an expedited path to citizenship for those who have deep connections to the country through marriage, which means you can now apply for Thai citizenship without the...

ETA Client Alert | Hotel Operators

ETA Client Alert | Hotel Operators

ETA - Client Alert | Hotel Operators Thailand's National Council for Peace and Order (NCPO) issued Order No. 6/2562 on 12 June 2019, to temporarily suspend the enforcement of town planning and local building control regulations on specific buildings that are used for...



Flexible Terms

3 year investment plan, ideal for first-time investors.

Flexible Payment Options

Option to receive interest payments monthly or quarterly.