Responsible Investing

Towards a Better Socio-Economic and Sustainable Ecosystem

Doing the right thing

At Kotak Private Equity, we believe in investing in a responsible manner. As the Indian economy provides several opportunities for growth, we consciously deploy our capital to maximize both commercial and societal returns. Our investments help build enterprises that create employment at the local level, spur consumption and leave a sustainable and long-term impact on society.

Clean energy for a better tomorrow
Kotak Private Equity is committed to a green world. We believe in deploying our capital to solve today's problems for a better tomorrow. We encourage our portfolio companies to practice environment friendly methods and adhere to strict compliance with environment laws.

Commitment to ESG
Kotak Private Equity recognizes that Environment, Social and Governance (ESG) issues are critical for every business. When we deploy capital and make investments, ESG due diligence is as important as the financial considerations of the deal. We believe that our commitment to ESG standards ultimately helps our business performance and ensures that we do the right thing.

The Kotak Edge

The Founder

Mr. Uday Kotak is Executive Vice Chairman and Managing Director, Kotak Mahindra Bank Limited. As a young 26-year old entrepreneur in 1985, Uday Kotak started Kotak Capital Management Finance Ltd. (which later became Kotak Mahindra Finance Ltd). The vision was to eventually become a banking company. On 22nd March 2003, Kotak Mahindra Finance Ltd. became the first company in India's corporate history to be converted into a bank. Under Uday's leadership, Kotak Mahindra established a prominent presence in other areas of financial services including stock broking, investment banking, car finance, life insurance, mutual funds and alternate assets. Today, Kotak Mahindra, a first generation enterprise, has a global presence, employs over 25,900 people and has the distinction of providing a 32% CAGR to its shareholders over a 22 year period.

Among his many accomplishments, Ernst & Young felicitated him with the EY Entrepreneur of the Year Award 2013 recently. Uday represented India at EY's global forum and was awarded the prestigious Ernst & Young World Entrepreneur of the Year 2014 Award by an independent jury. Euromoney listed him amongst the financial leaders of the 21st Century. He is a member of the Government of India's High Level Committee on Financing Infrastructure, the Primary Market Advisory Committee of the Securities & Exchange Board of India, Member of the Board of Governors of the National Institute of Securities Markets and ICRIER. He is also Governing Member of the Mahindra United World College of India, and Member of National Council of CII. Uday holds a Bachelors degree in Commerce and an MBA from Jamnalal Bajaj Institute of Management Studies, Mumbai.

Converging Entrepreneurial Dynamism with Institutional Stability

We are part of the Kotak Mahindra Group, one of India's leading and most respected diversified financial services institutions. With close to three decades of working with local businesses and being a part of the Indian growth story, the Kotak Mahindra Group understands India's business, regulatory and consumer landscape better than most.

Kotak Private Equity leverages the Group's research capabilities and relationships with Indian business houses to identify and invest in select companies.

Marrying Research with Relationships
Collaborating with its parent, Kotak Private Equity has developed a fine blend of combining the insights of macro research and the rigour of due diligence to build trusted relationships with Indian entrepreneurs and businesses. The Group's research capabilities and relationships help us spot macro trends and identify potential investee companies relevant to the Fund's investment strategy.

Investment Philosophy

A Synergistic Approach to Doing Business

At Kotak Private Equity, we have a simple Investment Philosophy identifying macro-economic and consumer demand trends in the Indian market early and partnering high growth companies that are helping meet that demand in the near and long term.

Beyond Capital
Business can't grow on capital alone – knowledge, experience and expertise are a key to building businesses, more so for medium-sized enterprises. Our portfolio companies benefit from our on-ground research, deep knowledge and an experienced team. We are committed to providing not just growth capital but to successfully building companies by providing both a strategic vision and support to their execution capabilities.

Partnering Growth Companies with Active Ownership
We believe in a shared vision and a culture of partnership with entrepreneurs and management teams. This builds a sense of trust and an alignment of goals with the long-term purpose of creating value and delivering returns to all stakeholders. With a deep understanding of the challenges that businesses face in an ever-changing economic environment, Kotak Private Equity helps entrepreneurs build successful enterprises.

Overview

We understand India better

Through Research, Rigour and Relationships
Since 2005, we at Kotak Private Equity have helped discover, grow and create value for mid-size Indian businesses across growth sectors. As part of the Kotak Mahindra Group, we combine our strength of understanding the local environment with international best practices in people, processes and research.

Given the experience and network of relationships built over the past two decades, our understanding of the Indian entrepreneur's mindset provides us with a significant advantage in the Indian investment environment. With a founding team that virtually pioneered the Indian Private Equity Industry, we are disciplined investors focused on long-term value creation and growth. Kotak Private Equity partners outstanding promoters and leadership teams to help create scale across industries.

Identifying Opportunities Ahead of the Curve
Through intensive research, we identify macro-economic trends and opportunities early. Our team has successfully identified sectors and companies much ahead of the curve, helping us invest conservatively and exit profitably while partnering companies in tapping growth opportunities and evolving into industry leaders. The team at Kotak Private Equity has often been amongst the first to invest in India's sunrise sectors such as Life Sciences & Healthcare, Media & Entertainment, Retail, Quick Service Restaurants, Business Process Outsourcing and Internet driven businesses.

Participating in India's Entrepreneurial Growth Story
With the backing of the Kotak Mahindra Group, one of India's leading and highly respected diversified financial services institutions, Kotak Investment Advisors Limited (KIAL), a wholly owned subsidiary of Kotak Mahindra Bank Limited, focuses on managing the Alternate Assets business of the Group. While the Kotak Mahindra Group has been associated with private equity investments since 1997, to bring a sharper focus to the group's Alternate Assets strategy, Kotak Mahindra Bank initiated its first structured third party private equity fund in early 2005.

Since then, the Alternate Assets business of the Group has raised USD 1.7 billion as of 30th June 2014 for management across two asset classes namely - Private Equity & Realty Funds, both led by independent investment teams. In 2013, KIAL launched an Infrastructure Fund in partnership with Sumitomo Mitsui Banking Corporation of Japan and Brookfield Asset Management of Canada.