Kotak Investment Advisors, the alternate investment arm of the Kotak Mahindra group, is set to launch a $1 billion (Rs 4,000 crore) infrastructure fund.
The group, which consolidated its alternate investment business, currently manages two private equity funds and three real estate funds.
The infrastructure fund will invest in core assets like power and transportation, which includes roads, ports and airports.
The funds will be raised in the first quarter of 2008-09.
Confirming the development, Nitin Deshmukh, head of Kotak's private equity business, said infrastructure would be the next big opportunity that the company was looking at. "A lot of things are happening in the infrastructure space and we are looking at tapping opportunities in that space," he said.
According to Ernst & Young estimates, India will require over $100 billion private equity investments in infrastructure over the next five years. Infrastructure witnessed 20 per cent growth during the last year, according to Macquarie.
Several domestic and overseas fund houses have together collected over $20 billion so far to invest in infrastructure opportunities in the country.