Adia writes a USD 675 mn check for Kotak’s real estate fund

Adia is writing another large check in India — this time in its property market. A wholly owned subsidiary of the Abu Dhabi sovereign wealth fund anchored a USD 1 bn investment vehicle for India’s Kotak Alternate Asset Managers, CNBC TV18 reports.

The details: The fund is the 14th real estate fund for Indian financial services conglomerate Kotak Mahindra Group’s investment arm, and the sixth Kotak real estate play that Adia has invested in. Adia’s contribution came in at upwards of USD 675 mn.

Next up: The fund will focus on providing growth and development financing across residential, commercial, and other real estate segments in major Indian cities.

Who are they? A specialized subsidiary of the Kotak Mahindra Group, Kotak Alternate Asset Managers is India’s leading alternative asset management and investment advisory firm. Kotak has raised, managed, or advised over USD 22 bn in total investments across a diverse range of asset classes.

“Adia’s sixth consecutive commitment is a testament to the trust earned over a decade of consistent delivery,” Kotak Managing Director Srini Sriniwasan said.

Adia has been expanding its India portfolio in recent years. Back in 2024, it announced plans for a USD 4-5 bn fund in Gujarat International Finance Tec-City, and last year it backed the IPOs of Indian digital stockbroker Groww and Bengaluru-based solar manufacturer Emmvee Photovoltaic Power. Wider UAE-India cooperation received a boost in January, as the two sides pledged more collaboration, including on trade and investments.

Adia also participated in Acme Solar’s qualified institutional placement (QIP) which raised INR 28 bn (USD 328 mn) for the firm, PTI reports. The exact size of Adia’s investment was not disclosed at the time of dispatch. The SWF joined marquee global investors including BlackRock, Amundi, Goldman Sachs and Pictet. This was Acme’s first equity raise since listing on Indian exchanges in 2024. Proceeds from the raise will go toward reducing debt and strengthening Acme’s balance sheet.

Market reaction: Following the announcement, Acme’s shares touched a fresh 52-week high on the National Stock Exchange before trading 1.86% above the previous close. The stock has gained 48% YTD, with the company’s market capitalization at around INR 213.48 bn (USD 2.5 bn).

Acme boasts 2.9 GW of installed renewable power generation capacity and is expected to add another 5GW. Most of its power is sold under long-term fixed-tariff agreements to government-backed buyers. ICICI Securities and IIFL Capital Services were the bookrunning lead managers for the QIP.

ICYMI- These investments come just daysafter Adia participated in Indian precision equipment manufacturer KRN Heat Exchangers’ qualified institutional placement.

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