Financial services firm Kotak Mahindra Group, Sumitomo Mitsui Bank of Japan and Brookfield AMC plans to set up a $300-million private equity fund to finance infrastructure projects, including power and airports, in the country.

The private equity (PE) fund will be raised from both domestic and international investors, Kotak Mahindra Group said in a statement.

The three entities will contribute up to 22.5 per cent or $66 million of the fund’s capital, it said.

Individually and collectively, the three entities strongly believe in the long-term growth prospects of the Indian infrastructure sector, said the Kotak Mahindra Bank Executive Director, Mr C. Jayaram.

“To start with, we are looking to raise $300 million from the international and domestic markets. In the medium and long-term, our aim is to build a substantial presence in this place,” he said.

The amount will be invested for infrastructure facilities like power generation and transmission, transport, water supply treatment and waste management.

Kotak Investments Advisors will manage the domestic fund, while Kotak Mahindra (UK) will manage the offshore fund.

Currently, Kotak Investments Advisors handles $1.2-billion of alternate assets, while Kotak Mahindra (UK) manages about $1.9 billion.

Kotak Mahindra Group has nominated Mr Suman Saha, who was earlier the executive director and co-head of the equity product group at Kotak Investment Banking, to lead the investment team.

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