Uday Kotak's eponymous group will reportedly combine its alternate fund management and investment advisory businesses into an entity with $18 billion under management.
Named Kotak Alternate Asset Managers (KAAM), the entity will include $8.9 billion in alternate investment funds and the advisory business with $9.1 billion under management, according to a Reuters report.
"This makes us the largest asset manager in India by a yard," Srini Sriniwasan, managing director of the newly created entity, told the news agency in an interview.
Sriniwasan further said that the entity has no plans to raise any external funds as it is adequately capitalised but sees growth opportunities in both the alternative investment and advisory businesses.
As per the report, KAAM has its largest investment funds in the real estate sector, with $3.4 billion in assets, followed by special situation funds which will hold a combined $2.6 billion and invest in stressed firms. Furthermore, it has $100 million private credit fund.
Sriniwasan also revealed that the company may consider launching funds for segments like logisitics, warehousing and permanent capital vehicles such as real estate investment trusts.
As for the advisory business, it will capitalise on India's growing affluent investor base, which is looking for investment options beyond traditional ones, said Lakshmi Iyer, head of the company's investment and strategy.
More and more investors are gravitating towards the advisory mode of managing their wealth rather than the traditional mode of being managed, Iyer told Reuters, adding that this is where the firm sees a significant opportunity.
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