Srini Sriniwasan, Managing Director, Kotak Alts, and Amit Jain, Chief Executive Officer, Kotak Yield & Growth Fund, outline the Category II AIF strategy targeting ₹5,000 crore
Mumbai, 12 February 2026: Domestic investor participation in private credit gained momentum as Kotak Alternate Asset Managers Limited announced a ₹3,900 crore first close of the Kotak Yield & Growth Fund, structured as a Category II Alternative Investment Fund with a target corpus of ₹5,000 crore.
The first close, equivalent to approximately USD 430 million, represents the largest domestic private credit fundraise from the Indian market to date. The capital was mobilised through participation from domestic family offices, Ultra High-Net-Worth Individuals, and Indian insurance companies, with distribution driven through Kotak Private Banking relationships.
The Kotak Yield & Growth Fund follows a sector-agnostic strategy focused on cash-flow-positive assets and mid to large-sized enterprises with established governance standards. The investment framework combines stable yield-generating assets with selective growth opportunities, supported by disciplined underwriting and portfolio construction principles.
Srini Sriniwasan, Managing Director, Kotak Alts, said the first close is significant as it marks the platform’s first domestic fundraise from Indian investors. He noted that earlier strategies were largely supported by global institutional investors and added that the fund extends institutional-grade governance and investment discipline to a domestic investor base.
Amit Jain, Chief Executive Officer, Kotak Yield & Growth Fund, said the response reflects investor confidence in the platform’s risk management framework and execution capabilities. He added that in the current credit environment, investors are increasingly seeking predictable income alongside downside protection, which the fund aims to address through a structured investment approach.
The fund seeks to leverage India’s expanding private credit landscape while maintaining focus on underwriting rigor, capital preservation, and clearly defined exit pathways as it progresses toward its targeted corpus.
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