$90m first close for Kotak India infra fund

SMBC and Brookfield are cornerstone investors, with commitments also received from the Japan Bank for International Cooperation, the Kotak Mahindra group, and a leading insurer.

Indian financial services group Kotak Mahindra has reached a $90 million first close for the Core Infrastructure India Fund, which will target investments in Indian infrastructure, the firm announced today. 

The fund counts Japanese bank Sumitomo Mitsui Banking Corporation (SMBC) and a subsidiary of Brookfield Asset Management as cornerstone investors. Other limited partners in the fund include the Kotak Mahindra group, the Japan Bank for International Co-operation (JBIC), and a “leading insurance group,” whose identity Kotak Mahindra declined to reveal. 

Kotak Mahindra, SMBC and Brookfield have contributed $50 million of the $90 million first close, Kotak Mahindra said in a statement. It added that JBIC’s commitment is its first for an India-focused infrastructure fund. 

The Core Infrastructure India Fund will target power generation and transmission, transportation, water treatment and supply, waste management, as well as gas transmission, distribution and storage assets.

“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,” C. Jayaran, joint managing director at the Kotak Mahindra Bank, commented in a statement. 

In a 2011 regulatory filing, Kotak Mahindra said it was targeting $300 million for the Core Infrastructure India Fund. The group’s consolidated net worth stood at approximately $2.6 billion as at December 2012.