All you need to know about Kotak Yield and Growth Fund

Recently, Kotak Alternate Asset Managers Limited (Kotak Alts) introduced the Kotak Yield & Growth Fund (KYGF). It employs a unique investment approach aimed at providing stable, credit-driven yields along with targeted growth through structured solutions. The fund seeks to leverage India’s growing private credit market while staying true to Kotak Alts’ signature emphasis on thorough underwriting, cash flow-positive businesses, and well-defined exit strategies.

Eshwar Karra, Deputy Managing Director of Kotak Alts, stated, “Kotak Yield & Growth Fund combines the two key pillars our investors value most—reliable yield and measured growth—delivered through the same rigorous credit underwriting that has defined Kotak Alts. We see a strong opportunity to fund high-quality Indian businesses with structure, security, and clarity on exits while sharing in their growth where appropriate.”

According to the Kotak Alternate Asset Manager press release, "KYGF is designed to deliver attractive, risk-adjusted income while driving sustainable long-term value through credit-anchored structures. The fund targets cash-flowing, mid- to large-sized enterprises with strong governance, leveraging structured solutions to unlock growth, enable strategic acquisitions, and support refinancing."

Regarding the allocation, the fund focuses on core allocation to security-enhanced private credit, which offers selective upside through equity-linked instruments, targeting resilient cash yields with potential for capital appreciation.

It offers defensive, structure-led risk management. As stated in the press release, it emphasizes seniority, collateral coverage, covenants, and pre-agreed monetization routes to reduce downside risk.

It focuses on sector-agnostic origination, targeting cash-generative businesses across listed and unlisted markets, leveraging Kotak Group connectivity for proprietary deal flow.

Amit Jain, Partner at Kotak Alts, said, “KYGF combines the stability of yield-oriented private credit with the upside of growth-driven opportunities, balancing risk and return. We will focus on underlying cashflows and back businesses that we understand well.”

The release emphasises that, with KYGF, Kotak Alts applies the same rigour and expertise that have characterised its global private credit strategies for over 20 years. Managing ₹40,000 Crore in private credit assets for international investors, Kotak Alts has achieved consistent returns of 18–20% with zero defaults across various transactions. "This proven track record is now being extended to domestic investors, including family offices and institutions, through the Kotak Yield & Growth Fund," per the press release.