Kotak Investment Advisors Ltd (KIAL), the alternative assets arm of the Kotak Mahindra Group has launched a pre-IPO fund - the Kotak Pre IPO Opportunities Fund. According to the investor presentation for the fund, it will aim to raise ₹1,000 crore with another ₹1,000 crore as greenshoe option. Apart from this fee, the fund will also charge a performance fee (carry) of 20% of profits above a hurdle rate of 10% pre tax. In other words, the fund must deliver a return of more than 10% for the performance fee to kick in. The pre IPO fund will target investments ranging from ₹25 crores to ₹200 crores and have an average holding period of around 3 years.

Source: Mint June 02, 2021 14:48 UTC