Kotak Alternate Asset Managers has successfully closed its Kotak Yield & Growth Fund (KYGF) at ₹5,000 crore, achieving its full fundraising target. According to reports from The Hindu BusinessLine, the fund grew from a first close of ₹3,900 crore in February 2026 to its final close of ₹5,000 crore. The fund attracted commitments exclusively from domestic investors, including institutional investors, family offices and Ultra High-Net-Worth Individuals (UHNIs) across India. As per Kotak Alts, the entire corpus was raised from domestic investors, reflecting strong confidence in India's private markets opportunities and growing interest among Indian investors in alternative assets beyond conventional equities and fixed-income instruments.
The Category II AIF is designed to deliver attractive risk-adjusted returns through a combination of stable yield-generating assets and selective growth opportunities. As reported by The Hindu BusinessLine, the sector-agnostic fund will invest in cash flow-generating businesses, real assets and mid-to-large-sized enterprises with strong governance practices. The fund targets private credit, real assets and selective growth opportunities across India's expanding private markets ecosystem. According to Kotak Alts, the fund will focus on cash-flow-generating businesses, real assets and mid- to large-sized enterprises with strong governance practices, with the firm stating it will use structured credit solutions as part of its investment approach, designed around the requirements of individual businesses and assets.
Eshwar Karra, Deputy Managing Director of Kotak Alternate Asset Managers, stated that the final close reflects the growing relevance of private credit and real assets in institutional portfolios and the confidence investors have placed in Kotak Alts' capabilities. According to The Hindu BusinessLine, Amit Jain, CEO Real Assets, emphasized that raising ₹5,000 crore entirely from domestic investors is a strong endorsement of Kotak's Private Credit and Real Assets franchise and the opportunities India presents. As per Kotak Alts, Jain noted that the fund's domestic fundraising reflected the opportunity the firm sees in India's private markets, adding that Kotak Alts would remain focused on identifying high-quality investment opportunities and constructing a portfolio of cash flow-generating assets while targeting strong risk-adjusted returns for investors.
With the final close completed, Kotak Alts will focus on deploying the ₹5,000 crore corpus across private credit, real assets and selective growth opportunities while targeting strong risk-adjusted returns for investors. As reported by The Hindu BusinessLine, the fund was launched in September 2025 and categorized as a differentiated investment strategy designed to deliver stable, credit-led yields alongside targeted growth participation through structured solutions. According to Kotak Alts, with the final close, the firm will now focus on deploying the capital responsibly across private credit, real assets and selective growth opportunities while targeting strong risk-adjusted returns for investors.
On September 9, 2026, Kotak Alternate Asset Managers announced a significant milestone with its twofold return on investment in HKR Roadways Ltd, generating ₹1,650 crore from the sale of the road developer to Cube Highways and Infrastructure V Pte. Ltd. As per Live Mint, HKR Roadways operates a 206-km, four-lane state highway project in Telangana through a build-operate-transfer toll concession that runs until February 2041. This successful exit demonstrates the firm's ability to deliver returns on its private credit investments and strengthens confidence in its alternative asset management capabilities.
