SMBC becomes core investor in Indian infrastructure fund

SMBC joins Japan Bank for International Cooperation in backing fund.

India’s Kotak Mahindra Group announced the first close of its India-focused infrastructure private equity fund with around US$90 million commitment. SMBC and an affiliate of Brookfield Asset Management have come in as cornerstone investors of Core Infrastructure India Fund Pte Ltd. Kotak, SMBC and Brookfield have committed over US$50 million at first close.

The total target size of the fund is around US$250 million. A Kotak executive said there may be more than one additional closing before a final close, but the timing of a closing cannot be predicted.

The final close of the fund is expected in the next 12 to 15 months. The fund will invest in companies engaged in power generation/transmission, transportation (roads, ports and airports), water treatment and supply, waste management, gas transmission, distribution and storage, among others.

SMBC is Japan’s second largest financial services group in market capitalization while Brookfield is a global alternative asset manager with more than US$175 billion in assets under management.