Kotak Investment Advisors, the alternative investment arm of Kotak Mahindra Bank, has reached a first close for Kotak Special Situations Fund with USD625 million in capital commitments. The fund received a USD500 million anchor commitment from the Abu Dhabi Investment Authority. Kotak Special Situations Fund will invest in non-performing loans in India, with a focus on preventing insolvency for pre-stress businesses. Separately, Kotak has agreed to invest up to INR400 million (approximately USD6 million) for a 50 percent stake in Shriram Grand 2, the 3,000-unit second phase of the Shriram Grand City affordable housing project being developed by India-based Shriram Properties in Calcutta. Kotak will complete the investment through Kotak India Affordable Housing Fund-I.