Largest first close of INR 3,900 crores (USD 430million) for domestic private credit fund raised from Indian market

Mumbai : Kotak Alternate Asset Managers Limited (“Kotak Alts”) today announced the first close of the Kotak Yield & Growth Fund, a Category II AIF with a target corpus of INR 5,000 crores. The first close of INR 3,900 crores (USD 430 million) represents the largestever domestic private credit fundraise in the Indian market, supported by strong participation from domestic family offices, Ultra High-Net-Worth Individuals (UHNIs), and leading Indian insurance companies.

The Kotak Yield & Growth Fund is anchored in a differentiated investment strategy focused on delivering attractive risk-adjusted returns through a blend of stable yield generation Assets and selective growth opportunities. The sector-agnostic fund targets cash-flow-positive assets, mid to large-sized enterprises with strong governance practices. Its investment philosophy is guided by rigorous underwriting, disciplined portfolio construction, and a steadfast emphasis on capital preservation.

Srini Sriniwasan, Managing Director, Kotak Alts said, “This first close is particularly significant as it marks the first time Kotak Alts has raised a fund in the domestic market from Indian investors. This has also exemplified the synergy that Kotak group has as the fund has solely been raised by Kotak Private Banking relationships. Historically, our strategies have been predominantly supported by global institutional investors. With this fund, we bring the same institutional-grade rigor, governance, and discipline that Kotak Alts has developed over two decades of consistent performance to a domestic investor base.”

Amit Jain, Chief Executive Officer, Kotak Yield & Growth Fund added, “The strong response to our first close reflects deep investor confidence in Kotak Alts’ investment philosophy, risk management framework, and execution capabilities. In an evolving credit environment, investors increasingly seek predictable income with downside protection. The Kotak Yield & Growth Fund is well positioned to meet this demand through a disciplined and opportunity-driven approach.”

The fund aims to leverage India’s expanding private credit landscape while maintaining Kotak Alts’ hallmark focus on robust underwriting, cash-flow-positive businesses, and clearly defined exit pathways.