Kotak Investment Advisors Raises $500 Million For $1 Billion Real Estate Fund

The asset management division of the Kotak Mahindra Group announced on Tuesday that it has received a $500 million investment for its $1 billion real estate fund from a division of the UAE-based Abu Dhabi Investment Authority (ADIA).

Over $3.3 billion has been raised, managed, or advised so far under the real estate fund series, according to Kotak Investment Advisors Ltd (KIAL).

"The new platform is primarily targeted at the significant demand for housing in India, which is driven by sustained economic growth and a shortage of urban housing clusters," said Mohamed AlQubaisi, executive director of ADIA's real estate department.

The new fund, according to Kotak Realty Fund CEO Vikas Chimakurthy, is an opportunistic fund that may invest across several real estate asset classes and capital stacks, including both debt and equity.

He added that they will mainly focus on residential real estate investments.

With this fund's initial close, KIAL will have raised roughly $1.5 billion in real estate over the course of the previous 18 months using a variety of strategies.

The managing director of KIAL, Srini Sriniwasan, asserted that their real estate fund has outperformed other funds over the previous 17 years across cycles and strategies, although he could not quantify the returns.

Our current and established partnership with Kotak is extended by this single investment agreement, according to Mohamed AlQubaisi, an executive director at ADIA.

Since its founding in early 2005, Kotak Investment Advisors has raised, managed, and advised approximately $6.8 billion across a variety of asset classes, including real estate, private equity, infrastructure, special situations, and investment advisory. The company concentrates on the alternate assets market.

The Abu Dhabi Investment Authority was founded in 1976 and is an internationally diversified investment agency that makes investments on behalf of the Abu Dhabi government with a long-term wealth development strategy in mind.