Kotak Alternate Asset Managers Unveils Yield and Growth Fund for Credit-Led Opportunities

Kotak Alternate Asset Managers has launched the Kotak Yield & Growth Fund (KYGF), a new investment vehicle focused on securing stable private credit returns while offering selective growth participation. This fund aims at businesses with strong cash flows and sound governance practices.

Strategic Focus on Private Credit with Growth Option

The Kotak Yield & Growth Fund is built to provide investors with secure, risk-adjusted income through structured private credit. It simultaneously allows for potential long-term value creation via equity-linked instruments. The key targets are mid-to-large-sized, cash-generating enterprises where clear exit strategies and strong governance can be established.

Leveraging 20 Years of Expertise

With more than ₹40,000 crore in private credit assets under management from global investors, Kotak Alts boasts a track record of 18% to 20% returns with zero defaults. This expertise now extends to domestic investors including institutions and family offices through KYGF. The fund introduces the same disciplined underwriting and due diligence which has long defined Kotak’s credit platform.

Read More: Investing ₹1 Lakh in Kotak Mid Cap at Launch Grew to ₹11.48 Lakh!

Structure-Driven Yield and Growth Model

The KYGF is income-first and growth-enabled. Its foundation lies in structured, security-enhanced private credit. Collateral coverage, seniority in capital stack, covenant protection, and predetermined monetisation routes are critical elements to mitigate downside risk. Selective use of equity-linked instruments contributes to capital appreciation wherever feasible.

Market Positioning and Deal Sourcing

The fund will engage with both listed and unlisted companies, enabled by Kotak Group's network to access proprietary deal flow. The emphasis remains firmly on sectors where Kotak has deep understanding and can enforce strong governance frameworks. KYGF stands out for its dual objective, preserving investor capital while unlocking growth outcomes.

Conclusion

Kotak Yield & Growth Fund presents an attractive blend of credit stability and growth dynamic. By focusing on financially strong businesses and robust risk mitigation frameworks, it offers a structured entry into India's growing private credit space for domestic investors.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in Mutual Funds are subject to market risks. Read all related documents carefully before investing.