Kotak Life Sciences Fund raises Rs 250 Cr in first close

Kotak Alternate Asset Managers Ltd. on Thursday announced the first close of its Kotak Life Sciences Fund, a private equity vehicle targeting investments in India’s healthcare and life sciences sector.

The fund, sized at Rs 1,600 crore ($193 million), has raised Rs 250 crore ($30.2 million) from family offices, institutional investors, ultra-high-net-worth individuals, and industry executives. It aims to back early- to growth-stage companies across pharmaceuticals, biotechnology, medical devices, digital health, and diagnostics.

“We are delighted with the response to the fund’s first close,” said Lakshmi Iyer, CEO of Investment and Strategy at Kotak Alternate Asset Managers. “This fundraising underscores investor confidence in our track record and the structural opportunities in the healthcare sector.”

In November 2024, the firm announced plans to raise upto $190 million aiming to invest in areas such as life sciences and diagnostics. 

Kotak Alternate Asset Managers, a subsidiary of Kotak Mahindra Group, has been an active investor in life sciences, deploying nearly Rs 4,000 crore across healthcare-related ventures over the past two years. Ashish Ranjan, director of private equity at the firm, said the fund’s strategy is to support high-potential companies in their formative years.

“Life sciences is a sector where we see immense potential for long-term growth. Our focus is on businesses that can innovate and scale over the next decade,” Ranjan said.

Kotak Alternate Asset Managers has invested heavily in healthcare over the past decade. The firm manages assets across private equity, real estate, infrastructure, and credit, with over $22 billion under management.

Kotak Mahindra Group has been actively investing in the healthcare and life sciences sectors through its mutual funds and private equity arms. The PE arm has invested in several companies in the life sciences space. 

Notable investments include Ahammune Biosciences Pvt. Ltd., a clinical-stage biopharmaceutical company developing therapies for dermatological conditions, and Immuneel Therapeutics Pvt. Ltd., which specialises in cell and gene therapies for cancer. Other investments include Niramai Health Analytix Pvt. Ltd., a health-tech startup offering AI-based solutions for early breast cancer detection, and Monitra Healthcare Pvt. Ltd., which develops wearable health monitoring devices. Additionally, Kotak has invested in Eyestem Research Pvt. Ltd., a biotechnology firm working on cell therapy for retinal diseases.