Kotak Arm Raises ₹3,900 Cr Private Credit Fund from Domestic Investors

Kotak Alternate on Thursday announced a Rs 3,900 crore fundraise, which will be deployed in private credit opportunities.

The entire amount has been raised from domestic investors, including family offices, Ultra High-Net-Worth Individuals (UHNIs), and insurers.

Kotak Alternate Asset Managers aims to raise Rs 5,000 crore for the "Kotak Yield and Growth Fund", and the Rs 3,900 crore is the largest-ever first round fundraise by an Indian platform from the domestic market, it claimed in a statement.

The sector-agnostic fund will focus on risk-adjusted returns through a blend of stable yield generation assets and selective growth opportunities.

It will lend to cash-flow-positive assets, mid to large-sized enterprises with strong governance practices, and capital preservation is among the guiding factors influencing investment philosophy.

Kotak Alternate Managing Director Srini Sriniwasan said this is the first time that it has raised a fund from domestic investors, and the fund has solely been raised by Kotak Private Banking relationships.

"In an evolving credit environment, investors increasingly seek predictable income with downside protection," the fund's chief executive Amit Jain said.