The three partners will contribute 22.5% to the fund — SMBC will put in 10%; Brookfield will contribute 7.5%; and Kotak will put 5%.
According to Kotak Mahindra, its funds will invest mainly in power generation and transmission, roads, ports, airports and other infrastructure projects including water treatment and supply, waste management, gas transmission, and also in infrastructure holding companies.
Kotak Investment Advisors will manage a domestic fund, while another group firm Kotak Mahindra (UK) will manage an offshore fund.
Kotak Mahindra Bank executive director C. Jayaram said infrastructure is a natural fit given that they already have a real estate fund and a general private equity fund.
"Also, we have enough experience in corporate banking and investment banking and, hence, can leverage those relationships and networks," Jayaram said.
India, which spends about 6% of its GDP on infrastructure, has set a target to to double its infrastructure spending to $1 trillion in the five-year period starting 2012, with private-sector investment contributing a significant share.
