Kotak Alternate Assets Managers Ltd is understood to be in the process of raising a $2-billion fund as it seeks to provide loans or structured credit to Indian companies, according to a report by Mint.
The fund—Kotak Strategic Situations Fund (KSSF) III, managed by the private equity (PE) arm of the Kotak Mahindra Group—is expected to deploy between Rs 800 crore and Rs 1,000 crore across 12-15 growth-stage companies, the report stated, quoting the firm’s deputy managing director Eshwar Karra.
As part of its fundraising strategy, the firm is reportedly in talks with a slew of international investors, including sovereign wealth funds and pension funds—an approach aligned with its previous capital-raising efforts. However, this time, the firm also seeks to raise capital from domestic institutional investors.
The two previous funds under the KSSF banner had target sizes of $1 billion and $1.5 billion, respectively.
India is rapidly emerging as a key hub for private credit in Asia, as a growing number of asset managers launch dedicated funds to meet rising demand for structured, non-dilutive capital. The trend reflects increasing interest from both investors and borrowers seeking flexible financing solutions outside traditional lending channels.
Among others that recently raised capital in this space, Avendus Group made the first close of its third private credit fund at Rs 1,000 crore (approximately $118 million) earlier in May. Meanwhile, Neo Asset Management marked the first close of its second flagship private credit fund at $233 million in April.
Separately, Franklin Templeton marked the first close of its debut India-focused credit AIF at Rs 205 crore, while Synergy Capital raised $715 million in the first close of its third Asia-focused fund—targeting a $1-billion final close—with India at the centre of its strategy.
