CIIF offers an opportunity to international investors to gain an exposure to India’s core infrastructure sectors and benefit from the specialized knowledge, project risk understanding and asset management expertise of the Kotak Mahindra Group. CIIF has cornerstone investments from Brookfield Asset Management Group, Canada and Sumitomo Mitsui Banking Corporation, Japan. It also has investments from Japan Bank for International Cooperation (JBIC), a policy based financial institution of the Government of Japan, and a leading life insurance company from Asia.
Kotak Mahindra Asset Management (Singapore) Pte. Ltd. (“KMAMS”) is the investment manager of the Fund. Kotak Investment Advisors Limited acts as an investor advisor to KMAMS.
CIIF invests in companies engaged in power generation and transmission, transportation (roads, ports and airports), water treatment and supply, waste management and gas transmission, besides distribution and storage in India.
Direct investments in infrastructure assets, through selective investments in project companies across a variety of infrastructure sectors and
Investments in infrastructure holding companies, which are essentially investment vehicles created by project sponsors to further invest in downstream project companies. Since infrastructure holding companies, at the time of CIIF’s investment, have investments in underlying project assets in different stages of development, construction and operation, CIIF believes that investments in such holding companies offer the maximum opportunities for capital appreciation, as its underlying investments commence operations and mature in the medium to long-term, and thus get re-rated.
Invest in less complex projects that are easier to implement
and operate and
Play in a segment that is distinct from large infrastructure projects that typically raise financing from global financial institutions and/or private equity funds. By focusing on a different segment, CIIF believes it benefits from a better ability to negotiate entry terms.
Sumitomo Mitsui Banking Corporation, Japan is the second largest financial services group in Japan in terms of market capitalization with a significant presence in infrastructure project finance globally and Brookfield Asset Management, a leading global alternative asset manager with assets across real estate, renewable power, infrastructure and private equity are the cornerstone investors in the Fund.
Other investors in the fund are Japan Bank for International Cooperation (JBIC), a policy based financial institution of the Government of Japan, and a leading life insurance company from Asia.
The Investment Committee, which approves all investments, has senior representatives from the Sponsor and Cornerstone Investors and decisions are taken by consensus.
Head – Infrastructure Fund
Suman Saha is Head of Kotak Infrastructure Fund at Kotak Investment Advisors Limited. Suman established the Infrastructure Funds managementRead More
Akshay is the Executive Director of Kotak Infrastructure Fund at Kotak Investment Advisors Limited. He is part of the Infrastructure Funds management...Read More
Debasmita joined Kotak Investment Advisors Ltd in July 2018. Prior to joining KIAL...Read More
In March 2015, CIIF committed approximately USD 18 million (together with a global renewable energy fund and the management team, approximately USD 32 million in aggregate) to a new solar energy platform (“Galaxy”) with the objective of building a world-class investor-owned solar IPP which, by 2020, is expected to grow to a capacity of 200 MW.
CIIF’s investment team had been tracking the Indian solar sector for some time and after the rapid fall in prices of solar modules and decline in solar tariffs to reasonable levels, it decided to actively pursue an investment in the sector in 2014. However, after analyzing virtually every existing solar platform at that time, all of which had significant legacy issues (e.g., un-hedged foreign currency debt, high and possibly unsustainable tariffs, unjustifiable valuation expectations), it decided to build Galaxy from scratch by partnering with a professional management team with a strong track record as well as experience in designing, developing, financing, constructing and operating grid connected solar IPPs in India.
Since the first drawdown in June 2015, Galaxy has organically grown to a portfolio of five projects with aggregate 120 MW capacity and four of which (100 MW) have since been commissioned and are performing in line with expectations. One project of 20 MW is under development. CIIF’s investment team works very closely with Galaxy’s management team in monitoring plant performance, negotiating EPC and other procurement contracts, and raising debt and equity capital for the projects.
Galaxy, with the active support of our team, recently raised additional capital from a global investor and proposes to double its current capacity over the next couple of years.
Cactus involved an acquisition of 100% stake in (a) Five operating road assets and (b) a parcel of industrial land measuring ~300 acres from a stressed Indian infrastructure developer in February 2016, jointly by CIIF and another infrastructure fund (together “the Acquirers”).
The total consideration paid for the acquisition by the Acquirers was INR 6.84 billion (approximately USD 100 million). Each road asset is housed in an individual SPV. All the roads are operating, 4 laned and the combined length of the 5 roads is 239 km. All of them operate under concessions granted by the National Highways Authority of India, an entity owned and controlled by the Government of India. Four of the five roads are BOT (Annuity) projects and one is a BOT (Toll) project. The roads are geographically spread across 4 Indian states.
Post the acquisition, the Acquirers have successfully completed a debt refinancing of INR 13.95 billion across the 5 road assets. Routine and/ or major maintenance activities have been undertaken, and continue to be undertaken across the assets to maintain and improve their quality. Apart from the board, which meets regularly to review the performance of the assets and set near term targets, a specific asset management committee has been constituted where the critical day-to-day issues regarding the assets are discussed between the Acquirers and decisions implemented. KMAMS co-manages the assets.
Suman Saha is Head of Kotak Infrastructure Fund at Kotak Investment Advisors Limited. Suman established the Infrastructure Funds management business of the Kotak Mahindra Group in 2013. The Infrastructure Funds team currently advises three Singapore – based fund vehicles which invest in core infrastructure in India.
Suman joined Kotak Mahindra Group in 1995 in its investment banking business. At Kotak Investment Banking, as Executive Director and Co–Head, Equity Product Group, Suman was involved in the origination and end–to–end execution of Equity Capital Market (“ECM”) transactions, including Initial Public Offerings and Follow–on Offerings of Indian companies. He has led some of the largest Indian ECM deals, several of which were in the Indian power, transport, other infrastructure and real estate sectors, like NTPC, Reliance Power, KSK Energy, JSW Energy, IPCL, Indraprastha Gas, IDFC, DLF, Sobha Developers etc. Prior to that, Suman set up and ran the project finance advisory business at Kotak Investment Banking, advising companies in the steel, automobile, power, gas distribution, storage terminal and other sectors.
Suman has over two and a half decades experience in project finance, investment banking, and infrastructure investing and asset management. He began his career in project finance in IDBI, prior to joining Kotak.
Suman is a 1991 graduate in Electrical Engineering from Jadavpur University, Kolkata and completed his post–graduation in Business Management from NMIMS, Mumbai.
Akshay is the Executive Director of Kotak Infrastructure Fund at Kotak Investment Advisors Limited. He is part of the Infrastructure Funds management business of the Kotak Mahindra Group. The Infrastructure Funds team currently advises three Singapore – based fund vehicles which invest in core infrastructure in India. Akshay joined Kotak Mahindra Group in 2011 and was part of the team that set up the Kotak Infrastructure Fund. He has been instrumental in closing four investment opportunities with aggregate investment requirement of USD 424 million in road transport, solar power and energy storage. Three of the transactions involved working closely with co-investors.
Prior to joining the Kotak Mahindra Group, Akshay was at the infrastructure advisory division of KPMG Advisory. At KPMG, Akshay led key engagements in the transport and energy sectors advising on market entry, financial feasibility, public private partnerships (PPP), due diligence and valuation. Some of his clients include Airports Authority of India, National Highways Authority of India, GMR Group, Reliance Industries, Shapoorji Pallonji Group, Cairn India, Sterlite Industries, etc. Prior to KPMG, Akshay was part of the Public Private Partnership team at CRISIL Risk and Infrastructure Solutions Pvt. Ltd, a division of CRISIL Ltd (A Standard & Poors Company).
Akshay has 13 years of experience in strategy consulting for infrastructure, and infrastructure investing and asset management. He began his career in the knowledge management team of McKinsey & Co.
Akshay is a 2002 graduate in finance from Delhi University and completed his post-graduation in Business Management in 2006 from XLRI Xavier School of Management.
Debasmita joined Kotak Investment Advisors Ltd in July 2018. Prior to joining KIAL, Debasmita was part of the corporate banking group of Kotak Mahindra Bank Ltd, which she joined in September 2017.
Debasmita started her career with the corporate banking group of ICICI Bank where she handled end-to-end relationships of large and mid- sized corporates, involving credit appraisal, risk analysis, portfolio quality management and structuring and execution of banking solutions for the corporate clients. Later she was part of the corporate banking team of Kotak Mahindra Bank, where she handled relationships of conglomerates and corporate groups.
Debasmita is a 2013 graduate in Electrical Engineering from the West Bengal University of Technology and has completed her Post Graduate Diploma in Management from IIM Indore in 2015.