Kotak Alternate Asset Managers Ltd has introduced the Kotak Yield & Growth Fund (KYGF), a hybrid strategy designed to deliver stable private credit yields alongside equity-linked growth opportunities, with a focus on India’s mid- to large-cap companies.
The Mumbai-based firm unveiled KYGF on September 29, positioning it as a differentiated offering in India’s maturing private credit market. The fund seeks to generate risk-adjusted returns by blending security-enhanced private credit with selective exposure to equity instruments.
Unlike conventional equity-focused funds, KYGF takes a sector-agnostic approach and leverages Kotak Alts established credit underwriting model, which has consistently generated 18–20% returns with zero defaults across its global mandates according to them.
This new vehicle extends the group’s private credit playbook—previously aimed at global investors—to domestic capital. The launch is part of Kotak Alts’ broader push to deepen its presence in India’s alternative investment landscape, having already managed over ₹1.6 lakh crore across asset classes since its inception in 2005.
With KYGF, Kotak is doubling down on structured finance as a growth catalyst for Indian enterprises, while offering investors a steady income backed by robust risk management.
Mr. Eshwar Karra, Deputy Managing Director, Kotak Alternate Asset Managers Limited, said, Kotak Yield & Growth Fund brings together the two pillars our investors value most—reliable yield and measured growth—delivered through the same rigorous credit underwriting that has defined Kotak Alts. We see a durable opportunity to fund high-quality Indian businesses with structure, security, and clarity on exits while sharing in their growth where appropriate.
Mr. Amit Jain, Partner, Kotak Alternate Asset Managers Limited, said, Kotak Yield & Growth Fund combines the stability of yield-oriented private credit with the upside of growth-driven opportunities, balancing risk, and return. We will focus on underlying cashflows and back businesses that we understand well.
