Kotak PE to tap domestic investors for new lifesciences fund

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Subscribe to enjoy similar stories. Mumbai: Kotak Mahindra's private equity is looking to tap domestic institutional investors (DIIs) for the first time since it launched the alternatives arm two decades ago, a senior company official said. The firm that has so far raised capital only from global investors is again looking at raising a lifesciences fund, this time from local investors.

“We are looking at tapping domestic investors for our new fund. We have already sought Sebi approval for the same and will launch it soon," said Srini Sriniwasan, managing director, Kotak Alternate Asset Managers Ltd. To be sure, the firm had raised a performing credit fund locally in the past.

However, this is their first equity fund that is being raised domestically. According to him, most large domestic institutional investors such as insurance companies and pension funds have not even exhausted the regulatory maximum permissible limits. The maximum permissible allocations across such institutions, based on 2023 data, is ₹7 trillion, of which only ₹3.2 trillion is invested.

“Slowly, they (DIIs) are warming up to the idea of investing in AIFs and PE/VC funds. Our own capital should go towards building world-class companies out of India," Sriniwasan said. With more than $18 billion of assets under management across private equity, real estate, private credit, strategic situations, data centre and infrastructure, among others, the Kotak Mahindra Group realigned its alternative investment business under one umbrella last year.