Kotak Launches India-Focused Hedge, P.E. Funds

Dec 13 2006 | 12:28pm ET

Kotak Mahindra (UK) is planning to launch a private equity fund dubbed the Kotak India Focus Fund in early 2007, and is looking to hold a first close of the new offering in the first quarter.
The fund, which is in the preliminary marketing stage, will have a capacity of about US$200 million to US$250 million, according to Shamik Cholera, vice president of institutional sales.

KIFF is a “long-term capital appreciation” vehicle that will invest in listed equities of mid-market companies in India through secondary markets, public investments in private equity, or PIPEs, and initial public offerings. The Kotak Mahindra group recently hired Prakash Rameshan, former portfolio manager for a Middle Eastern family office, to manage KIFF.

The new fund charges a 2% management fee and a 20% performance fee, with a US$5 million minimum investment and an 8% hurdle rate. It also sports a 100% catch-up and claw-back clauses, and the fund team and adviser will get up to 40% of the carried interest.
Cholera also said the firm is looking at launching an India-focused hedge fund early next year, and are currently in the process of building a team for the fund as well as looking to work with “appropriate partners on this venture.”
Kotak Mahindra Group is based in India and offers institutional and individual financial products and services including commercial banking, to stock broking, mutual funds, life insurance and investment banking. The group has a net worth of over US$650 million and employs some 8,800 people with offices in New York, London, Dubai and Mauritius.

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