Abu Dhabi Investment Authority (ADIA) has committed $500 million to a fund that will be managed by Kotak Investment Advisors Limited. It will target a range of non-performing loan (NPL) opportunities in India.
Kotak Special Situations Fund would target both pre-stress and distressed opportunities with a key focus on providing financial support to pre-stress businesses to prevent them from entering insolvency.
“The fund is being anchored by a $500 million commitment from a wholly owned subsidiary of the Abu Dhabi Investment Authority, Kotak Investment Advisors said in a statement.
The fund is led by Eshwar Karra, former CEO of Phoenix ARC, who has significant experience in the stressed asset space.
“Institutional investors can play an important role in building a successful secondary market for nonperforming loans in India,” said Hamad Shahwan Aldhaheri, ED of private equities department, ADIA.
