Kotak Alternate Assets, managed by Kotak Investment Advisors Ltd, has announced it has marked the first closure of its Kotak Data Centre Fund at $590 million, raising about 74% of the targeted corpus of $800 million. In an effort to promote the data-backed digital economy, enterprise cloud, 5G, and IoT, the Kotak Data Centre Fund will invest in expanding data center capacity.
According to Rahul Shah, executive director at Kotak Investment Advisors Ltd, as a high capex industry that needs capacity expansion, they think there is a chance for equity investment to support partners in building capacities. They will give their partners strategic risk capital and value-added assistance.
For Srini Sriniwasan, managing director of Kotak Investment Advisors Limited, a data revolution is about to begin in India. Data Centers are hence the foundation of the country’s goal of becoming a Digital India. The data center-focused fund is launched against the backdrop of a developing sector that serves as the backbone of India’s effort to build a digital economy; according to official projections, this industry will likely reach $1 trillion in value by 2025.
In India, investments in data centers may reach $20 billion by 2025, according to a report by the real estate advisory firm CBRE, which observed that $14 billion in investment announcements have been made in this industry during the previous five years.
Moreover, according to a Statista analysis, the revenue generated by the Indian data center market is forecast to reach $7.83 billion by 2023 and rise at an annualized rate of 4.3% from 2023 to 2027, when it is expected to reach $9.27 billion.
Kotak Investment Advisors, which was founded in 2005, is the Kotak Mahindra Group’s subsidiary for alternative asset management and investment advice. It has so far raised, managed, and provided advice on a total of over $7.5 billion across a variety of asset classes, including real estate, infrastructure, private equity, special circumstances funds, and investment advisory.
VCCircle has previously reported on its planned investment plans in June of last year. The financial advice firm intends to enter the venture capital, venture debt, and buyouts sectors, according to the statement.
KIAL also celebrated the final close of its category-II alternative investment fund (AIF) with a capital of 6,000 crore, the Kotak Infrastructure Investment Fund (KIIF), in December. For the fund, anchor investors including the Asian Infrastructure Investment Bank (AIIB) and the Canada Pension Plan Investment Board have made pledges totaling Rs. 5,328 crore.
The Abu Dhabi Investment Authority (ADIA) has also committed to investing $1 billion in the 13th real estate fund of the alternative asset company.