Kotak Alternate Assets will launch Rs 1000 crore credit fund

Kotak Alternate Assets, a category II alternative investment fund managed by Kotak Investment Advisors, will launch a 1,000 crore private credit fund (AIF).

Kotak Alternate Assets, a category II alternative investment fund managed by Kotak Investment Advisors. Moreover, will launch a 1,000 crore private credit fund (AIF).

Niraj Karia, a former KKR executive, will lead Kotak Private Credit Fund. Which is a green-shoe option for raising another 1,000 crore will be available to the fund.

The fund will have a wide investing universe and will be sector-agnostic, according to a corporate release.

It will concentrate on the performing credit space. Offering finance to mid-market growth-oriented companies with proven business models. In order to generate mid-to-high-teen returns.

Srini Sriniwasan, Managing Director, Kotak Investment Advisors, said. “The effort to raise a Private Credit Fund comes at an opportune time. Coinciding with the evolving private credit ecosystem and will help increase our footprint in the credit investment space. By making secured investments in mid-sized businesses while generating superior returns.”

Categories of Alternate Investment Fund

There are three categories of AIFs – I, II and III. Firstly, category II AIFs are those that do not fall under categories I and III and do not undertake leverage other than to meet their day-to-day operational requirements as per SEBI regulations. Real estate funds and private equity funds fall under this category.

According to SEBI data, category II AIFs had raised funds totaling ₹2.23 trillion. As well as had made investments worth ₹1.99 trillion as of 31 March 2022. Hence, this accounted for 70-71% of the funds raised and investments made by all AIFs – category I, II and III – put together.

 

 

 

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