Kotak Mahindra Hits Milestone with Rs 1,200 Crore Credit Fund

Kotak Mahindra Asset Management Company has successfully raised Rs 1,200 crore, marking the closure of the first tranche of its 'Kotak Credit Opportunities Fund'. The firm is now setting sights on an additional Rs 800 crore, expecting to achieve this goal over the next three months, according to senior officials.

The company is set to invest Rs 300 crore in a performing credit alternative investment fund (AIF), as stated by its Chief Investment Officer, Saurabh Tripathi. The AIF aims to capitalize on existing credit market gaps, with an expected gross internal rate of return ranging from 14 to 16 per cent.

Investments have been sourced from high net worth individuals, corporate treasuries, and institutional investors. Furthermore, the demand for private credit remains high, illustrated by last year's USD 10 billion worth of transactions in India. A dedicated four-member investment team will handle fund deployment, with efforts to be finalized in the next five and a half years.

(With inputs from agencies.)