New Delhi: Kotak will launch Alternate Assets managed by Kotak Investment Advisors a 1,000 crore private credit fund, a Category II Alternative Investment Fund (AIF). Kotak Private Credit Fund will be headed by Neeraj Karia, who was earlier with KKR. The fund will have a green-shoe option to raise another 1,000 crores.
According to a company statement, the fund will have a diversified investment universe and will be sector-agnostic. It will focus on the performant credit space, providing loans to growth-oriented companies with established business models in the mid-market space to achieve mid- to high-teens returns.
Srinivasan, Managing Director, Kotak Investment Advisors, said, “The effort to raise private credit funds comes at an opportune time, coinciding with the evolving private credit ecosystem and helping us grow our footprint in the credit investment space by making safe investments. Will do. Medium sized businesses giving better returns.”
There are three categories of AIFs – I, II and III. Category II AIFs are those which do not fall under Category I and III and do not have leverage other than to meet their day to day operating requirements as per SEBI regulations. Real estate funds and private equity funds fall into this category. As per SEBI data, the total fund raised by Category II AIFs was 2.23 trillion and was made worth investing in 1.99 trillion by 31 March 2022. This accounted for 70-71% of the funds and investments raised by all AIFs – Category I, II and III.