Kotak Alternate Asset Managers launches Kotak Yield & Growth Fund

Kotak Alternate Asset Managers have announced the launch of the Kotak Yield & Growth Fund (KYGF), a differentiated investment strategy designed to deliver stable, credit-led yields alongside targeted growth participation through structured solutions.

The fund aims to capitalize on India’s expanding private credit landscape while maintaining Kotak Alts’ hallmark focus on robust underwriting, strong cash flow positive business and clearly defined exit pathways.

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Kotak Yield & Growth Fund is designed to deliver attractive, risk-adjusted income while driving sustainable long-term value through credit-anchored structures. The fund targets cash-flowing, mid- to large-sized enterprises with strong governance, leveraging structured solutions to unlock growth, enable strategic acquisitions, and support refinancing, according to a press release.

“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,” said Eshwar Karra, Deputy Managing Director, Kotak Alternates.

“Kotak Yield & Growth Fund (KYGF) 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,” Amit Jain, Partner, Kotak Alts, said.

With Kotak Yield & Growth Fund, Kotak Alternate brings the same rigor and expertise that has defined its global private credit strategies for over 20 years. Managing Rs 40,000 crore in private credit assets for global investors, Kotak Alts has delivered consistent returns of 18–20% with zero defaults across numerous transactions. This proven track record is now being extended to domestic investors, including family offices and institutions, through the Kotak Yield & Growth Fund.

According to the press release, the fund focuses on income-first and is growth-enabled which means core allocation to security-enhanced private credit with selective upside via equity-linked instruments—targeting resilient cash yields with potential for capital appreciation.

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The emphasis is on seniority, collateral coverage, covenants, and pre-agreed monetization routes to mitigate downside risk and is focused on cash-generative businesses across listed and unlisted markets, leveraging Kotak Group connectivity for proprietary deal flow.