Indian Investors Are Moving to Alternatives, Kotak Mahindra Says

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00:00When equity markets are doing very well, alternates come up.

00:05Alternates have been the flavor in 2007-8, before the crisis.

00:11We, in fact, launched an art fund way back in 2006-7

00:15because you wanted alternative ways to invest.

00:20Were we mature enough in 2006 to understand the art fund?

00:25Question mark.

00:25But alternates get a space, and so is the case in India.

00:30There's a lot of interest in alternate assets.

00:33Now we also see a lot of interest in private credits.

00:36So you see a lot of funds which are set up by international managers in India doing private credit business.

00:43So that's something which is gaining a lot of traction.

00:45You see a lot of real estate play through structures like REITs and INVITs.

00:52You have a lot of private equity and real estate funds again

00:56where you are able to participate in a pre-IPO situation

01:00or, again, a private credit situation

01:03or an infrastructure fund

01:05or special situations which are sourced by the fund manager in a company

01:10like a de-merger, like a merger, like a big acquisition,

01:14and you know that the valuations of the company will go up.

01:16So you acquire some of these companies in your fund.

01:19So you see a lot of growth in all these asset classes.