New Delhi, Sept. 23 -- Kotak Alternate Asset Managers Ltd, the alternative asset management arm of the Kotak Mahindra Group, has hit the final close of its Kotak Yield & Growth Fund (KYGF) at Rs 5,000 crore ($522 million), raised entirely from domestic investors, the firm said in a statement.

The fund had hit the first close at Rs 3,900 crore in February this year. It has roped in investors such as family offices, institutional investors and ultra-high-net-worth individuals (UHNIs) from across India.

A Category-II alternative investment fund (AIF), KYGF seeks to deliver risk-adjusted returns through a combination of stable yield-generating assets and selective growth opportunities, the statement said. The sector-agnostic fund will invest in cash flow-generating businesses, real assets and mid- to large-sized enterprises with strong governance practices.

"The final close reflects the growing relevance of private credit and real assets in institutional portfolios and the confidence investors have placed in Kotak Alts' capabilities. We will remain focussed on identifying high-quality opportunities and building a portfolio of cash flow-generating assets through structured credit solutions," said Eshwar Karra, deputy managing director at Kotak Alternate Asset Managers.

With the final close, Kotak Alts will focus on deploying the fund's capital across private credit, real assets and selective growth opportunities.

"The final close is an important milestone, but the real work begins now: deploying this capital responsibly and delivering strong risk-adjusted returns for our investors," said Amit Jain, chief executive officer, real assets, Kotak Alts.

Established in 2005, Kotak Alts focuses on alternative asset management and investment advisory businesses. It has raised, managed or advised over $22 billion across private credit, real estate, real assets, private equity, and investment advisory.

Recently, it appointed former ValueQuest executive Pushkar Jauhari as chief executive officer of its private equity and venture capital business, and elevated partners Rahul Shah and Rahul Chhaparwal as managing partners. It also raised $1 billion for its maiden special situations fund.

Published by HT Digital Content Services with permission from VC Circle.