Kotak Alternate Asset Managers Limited has introduced the Kotak Yield & Growth Fund (KYGF). This fund is designed to provide stable credit-based returns along with targeted growth.
It aims to benefit from India’s expanding private credit sector by focusing on businesses with strong underwriting standards and healthy cash flows.
The objective of the fund is to deliver attractive, risk-adjusted income and long-term value through a credit-focused approach.
It will mainly target mid- and large-cap companies that demonstrate good cash flow and strong governance practices.
Additionally, the fund plans to use structured solutions to support company growth, strategic acquisitions, and refinancing needs.
Key Features of Kotak Yield & Growth Fund
Income First, Growth Later: A majority of investments will go into secured private credit for stable returns, with a smaller portion allocated to equity-linked instruments for capital growth.
Risk Management: The fund follows a defensive structure with emphasis on collateral coverage, seniority, covenants, and clear monetization paths to minimize risks.
Focus on Cash-Generating Businesses: It will invest in both listed and unlisted companies that generate steady cash flow, while leveraging Kotak Group’s strong network for niche opportunities.
Balanced Returns and Growth
Ishwar Karra, Deputy Managing Director of Kotak Alts, said that the fund offers investors two key advantages: dependable returns and balanced growth.
He emphasized that KYGF is built on Kotak’s strong credit underwriting practices. According to him, the fund provides a secure opportunity to invest in high-quality Indian businesses while also participating in their future growth.
