Kotak Eyes Rs 2,000 Cr Via AIF

Mumbai: Kotak Mutual Fund is targeting to raise up to Rs 2,000 crore through its maiden private credit alternate investment fund (AIF), a senior official said on Wednesday.The company will launch the AIF in the next quarter and a fifth of the overall fund size will be its own money, Deepak Agrawal, the Chief Investment Officer-Debt, of Kotak Mahindra Asset Management Company, told reporters here.

“We are aiming to raise anything between Rs 1,500-2,000 crore from the fund,” Agrawal said. It can be noted that the private credit space has attracted a lot of attention of asset managers lately, and Kotak’s peers, including Aditya Birla Sun Life MF and Nippon MF, have similar offerings. Asked about the internal rate of returns that it is targeting with the new offering, Agrawal said investors should expect a 3-4 percentage point higher than normal debt mutual funds. Typically, private credit funds target an IRR of 15-16 per cent. Agrawal said the AIF will look at lending for opportunities like promoter wanting to buyout a private equity fund looking for an exit on its investment or to buy out a fellow family member.