Kotak AMC To Launch Private Credit AIF By March Quarter; Fund Size Estimated Up To Rs 2,000 Crore

Kotak Mahindra Asset Management Co. is set to launch its first private credit alternative investment fund by the end of this fiscal. The fund will be a category II debt AIF, according to Saurabh Tripathi, chief investment officer – private credit at Kotak AMC.

The fund is in the process of receiving approval from the Securities and Exchange Board of India, and is likely to be launched in the January-March quarter, Tripathi said.

The fund size is estimated at Rs 1,000 crore, with a greenshoe option of Rs 1,000 crore. Along with sponsor capital to the tune of 20%, the fund is targeting raising money from high-networth individuals, family offices and other qualified institutional investors, Tripathi added.

The AIF will be sector agnostic, and will look to invest in greenfield projects, brownfield projects, provide exit strategies for private equity players, and so on, he said. The fund will be open to all opportunities that come its way, aiming to be a provider of solution capital, the top Kotak AMC executive further noted.

Speaking on the rationale behind the move, Tripathi said that the private credit market has grown tremendously in the post-Covid-19 period, with increasing allocations seen towards India.

The fast growing market is also a testament to what is happening in the country, and is aided by the consumer centric approach in the market, he explained.