Kotak Investment Advisors has secured an anchor investment of USD 500 million from the Abu Dhabi Investment Authority (ADIA) for its 13th real estate fund, a USD 1 billion platform targeting real estate investments in the country. With this new fund, Kotak Investment Advisors has raised, managed or advised more than USD 3.3 billion under its real estate fund series, the company said in a statement on Tuesday.
Vikas Chimakurthy, the chief executive of Kotak realty fund said the new fund is an opportunistic fund which can invest across various realty asset classes and capital stack — both debt and equity. They will primarily target investments in residential assets, he added.
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With the first close of this fund, KIAL has raised around USD 1.5 billion in real estate across multiple strategies in the past 18 months or so. Srini Sriniwasan, the Managing Director at KIAL, claimed that their realty fund has been a consistent performer over the past 17 years across cycles and strategies but he did not quantify the returns.
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Mohamed AlQubaisi, an Executive Director at ADIA said, this one investment agreement extends our existing and longstanding relationship with Kotak. Kotak Investment Advisors focuses on the alternate assets business since its launch in early 2005 and has since then raised/managed/ advised over USD 6.8 billion across different asset classes including real estate, private equity, Infrastructure, Special Situations, and Investment Advisory.
Established in 1976, the Abu Dhabi Investment Authority is a globally-diversified investment institution that invests funds on behalf of the Government of Abu Dhabi through a strategy focused on long-term value creation.