Abu Dhabi Investment Authority’s (ADIA) initial tranche of investment in Kotak Investment Advisors (KIA)’s real estate fund has yielded a rich dividend of about 20 percent return, the top executive of the Indian fund manager has said.
“ADIA has so far invested in three real estate funds and one special situation distressed fund of KIA and their first investment in our real estate fund has earned them 20 percent return,” Srini Sriniwasan, managing director of KIA, told Arabian Business.
ADIA has invested a total of $1 billion with KIA. Half of this is committed to the special situation distressed fund of KIA.
Srini said KIA was not in discussions with ADIA for fresh investments currently, as the funds already invested by the Abu Dhabi-based sovereign fund were yet to be fully deployed.
“We will think about talks with ADIA for fresh commitments once we fully deploy their funds invested with us,” he said.
When contacted, ADIA declined to comment on their plans for fresh investments in KIA funds or on the return on their early investments with the Indian fund manager.
Industry sources said ADIA seem to be betting big on India, especially in the distressed asset sector, and could be pumping in big investments going forward.
ADIA has already reportedly invested about $3 billion in the last two years alone. Much of it is in the infrastructure sector, according to industry analysts.
Indian renewable energy companies ReNew Power and Greenko are among some of the infra sector companies which have received equity investments by ADIA in the recent months.
Srini said many of the Middle East-based institutional funds were bullish about India and have already made sizeable investments in some of the select sectors in the recent years.
“Infrastructure and services sectors were among the preferred sectors by foreign funds, including the funds from the Middle East,” he said.
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