The exterior of the Abu Dhabi Investment Authority building is viewed in Abu Dhabi, United Arab Emirates. (Photographer: Charles Crowell/Bloomberg News)

Abu Dhabi Wealth Fund Starts Distressed Assets Fund in India

(Bloomberg) -- Abu Dhabi Investment Authority set up a distressed assets fund in India, anchoring it with a $500 million commitment.

The sovereign wealth fund is partnering with Kotak Investment Advisors Ltd. for the Kotak Special Situations Fund, which will target non-performing loan opportunities in the South Asian nation.

The fund will target both pre-stress and distressed opportunities, with a key focus on providing financial support to pre-stress businesses to prevent them from entering insolvency, United Arab Emirates’ state-run WAM news agency reported.

Read more: India Infrastructure Fund in $1 Billion Pact W/ Abu Dhabi Fund

“With a broad mandate to invest across asset types and sectors, our new partnership with Kotak will contribute to this process and help to ease the burden of NPLs on the Indian financial system,” said Hamad Shahwan Aldhaheri, executive director of the private equities department at ADIA.

©2019 Bloomberg L.P.