Kotak Alternate Secures ₹3,900 Crore from Domestic Investors for Private Credit Fund

Kotak Alternate Asset Managers has raised ₹3,900 crore in the first close of its private credit fund. As per PTI reports, the firm said the amount was sourced entirely from domestic investors, including family offices, ultra-high-net-worth individuals (UHNIs), and insurance companies. 

It described the raise as the largest first-round fundraise by an Indian platform in the domestic market for a private credit vehicle. 

Fund Target and Structure 

The new vehicle, called the Kotak Yield and Growth Fund, has an overall target size of ₹5,000 crore. The ₹3,900 crore represents the first close, with additional capital expected in subsequent rounds. 

The fund is structured as a sector-agnostic strategy, allowing it to deploy capital across different industries. 

Investment Approach 

The strategy will focus on private credit opportunities. It plans to lend to cash-flow-positive assets and mid to large-sized enterprises with established governance practices. 

The fund aims to combine stable income-generating assets with selective growth opportunities. Capital preservation is one of the guiding considerations in the investment approach. 

Source of Commitments 

Managing Director Srini Sriniwasan said this is the first time Kotak Alternate has raised a fund entirely from domestic investors. He noted that the capital was mobilised through relationships within Kotak’s private banking network. 

Chief Executive Amit Jain said investors are looking for predictable income streams along with some level of downside protection in the current credit environment. 

Read More: Dream Money Joins ONDC Network to Launch Mutual Fund Distribution Across India!  

Conclusion 

The ₹3,900 crore moves the Kotak Yield and Growth Fund closer to its ₹5,000 crore target, with the strategy focused on lending to established businesses across sectors. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/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.   
 
Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.