Abu Dhabi Investment Authority seeded Kotak Special Situations Fund with a $500 million commitment, the sovereign wealth fund said Thursday.
Managed by Kotak Investment Advisors, the fund will target a range of non-performing loans in India with an objective of reducing the volume of non-performing assets in the Indian economy.
"Institutional investors can play an important role in building a successful secondary market for non-performing loans in India," said Hamad Shahwan Aldhaheri, executive director of ADIA's private equities department, in a news release. "With a broad mandate to invest across asset types and sectors, our new partnership with Kotak will contribute to this process and help to ease the burden of non-performing loans on the Indian financial system."
ADIA's assets are estimated at $828 billion by the Sovereign Wealth Fund Institute.