Kotak Alts raises Rs.3,900-Cr for private credit fund

Mumbai-based Kotak Alternate Asset Managers Limited (Kotak Alts) has raised INR 3,900 Cr (USD 430 million) in the first close of its Kotak Yield & Growth Fund. This represents the largest domestic private credit fundraise in India. The Category II Alternative Investment Fund has a target corpus of INR 5,000 Cr.The fundraise drew participation from domestic family offices, ultra high-net-worth individuals, and major Indian insurance companies. This marks Kotak Alts’ first fund raised entirely from the domestic market through Kotak Private Banking relationships, a departure from its historical reliance on global institutional investors.The sector-agnostic fund targets cash-flow-positive assets in mid to large-sized enterprises with strong governance practices. Its strategy combines stable yield generation with selective growth opportunities, emphasizing rigorous underwriting and capital preservation.