Kotak Private Credit fund to raise up to Rs 2,000 cr to finance mid-mkt cos

Kotak Alternate Assets will raise upto Rs 2,000 crore in its Private Credit Fund to provide debt to mid-market companies. Niraj Karia, formerly with KKR, will lead Private Credit practice at the company.

The fund will have a diversified investment universe and be sector-agnostic. The Kotak Private Credit Fund’s size will be Rs 1,ooo crore with a greenshoe option to raise another Rs 1,000 crore.

The fund will focus on the performing credit space, providing debt to growth-oriented companies with established business models in the mid-market space to secure mid to high teen returns, the company said in a statement.

Kotak Investment Advisors Limited (KIAL) manages Kotak Alternate Assets. Srini Sriniwasan, Managing Director, KIAL said, the effort to raise a Private Credit Fund comes at an opportune time, coinciding with the evolving Private credit ecosystem.

It will help increase our footprint in the credit investment space by making secured credit investments in mid-sized businesses while generating superior returns for investors.

KIAL was set up in early 2005 and has raised/managed/advised in aggregate over $ 5.1 billion across different asset classes. The asset classes it manages include Private Equity Funds, Real Estate Funds, Infrastructure Funds, Special Situations Fund, Listed Strategies and Investment Advisory.

 

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(Entities controlled by the Kotak family have a significant shareholding in Business Standard)