INSUBCONTINENT EXCLUSIVE:
MUMBAI: Kotak Investment Advisors, which manages about $3.5 billion worth of assets, is set to begin deploying th
e
money it has
raised in the past month via two funds that are backed by Abu Dhabi Investment Authority (ADIA).
Big opportunity lies ahead in India in
appear to be generating enough cash and where the banks are willing to take a reasonable haircut in debt.
In the last one month, it has
raised $625 million under Kotak Special Situation Fund, which is aimed at providing bespoke financial solutions and investment opportunity
in companies that are negotiating settlements on stressed loans
Earlier this week it launched India Office Assets Fund, raising $400 million.
UAE-based sovereign wealth fund Abu Dhabi Investment Authority
has committed $500 million and $200 billion in the two funds.
Sriniwasan has been managing alternative assets for the last one and a half
Moreover, the bidding process to buy bad loans should also be more transparent as there should be sanctity and strict adherence of bidding
new amendment under 12A of IBC, if 90% of creditors agree, the company can be taken out of the IBC process.
The risk of allowing erstwhile
directors to COC proceedings is that the promoters will use the information to exercise 12A
As a consequence, serious bidders will be reluctant to bid aggressively.
According to Sriniwasan, IBC caters to evolution of bond market as
creditor protection encourages greater investor participation
This will lead to all varieties of investors coming, including into high risk bonds