New Delhi, May 12 -- Kotak Mahindra Asset Management Company has completed the final close of its maiden private credit alternative investment fund, Kotak Credit Opportunities Fund.
The fund has garnered commitments of more than Rs 2,000 crore (around $209 million).
The fund saw participation from high-net-worth individuals (HNIs), ultra-high-net-worth individuals (UHNIs), family offices, corporate treasuries, and institutional investors, the firm said in a note.
Last year, Kotak AMC had marked the first close of its performing credit fund after garnering Rs 1,200 crore in commitments.
"The strong investor response reflects confidence in our investment philosophy and execution capabilities. We believe private credit will play an increasingly important role in India's financing ecosystem as demand for flexible capital solutions grows," Nilesh Shah, managing director at Kotak Mahindra AMC, said in the note.
The Category-II AIF is mandated to invest in performing credit opportunities in emerging companies with profitable operations and stable cash flows. The primary use of the funding is to service the company's existing financial obligations.
The fund has already deployed over 50% of its corpus across diversified sectors and will continue to invest in performing credit opportunities, providing tailored capital solutions to established Indian corporates and promoters.
"With a focus on performing credit, our approach aims to combine downside protection with stable and predictable returns for investors," Sunit Garg, chief investment officer, private credit at Kotak Mahindra AMC, said.
Kotak Mahindra AMC is a wholly-owned subsidiary of Kotak Mahindra Bank and acts as the investment manager for Category II and III AIFs.
Published by HT Digital Content Services with permission from VC Circle.