Kotak Aims for $2 Billion Private Credit Fund Amid Surging India Demand

• Kotak Alternate Asset Managers Ltd. plans to raise up to $2 billion for its third private credit fund, targeting a final close by September.
• The fund will focus on sectors like data centers, pharmaceuticals, diagnostics, steel, and cement, despite global private credit market concerns.
• India's closed-ended fund structure reduces sudden outflow risks, but currency volatility remains a key concern for overseas investors.
• Private credit is gaining momentum in India as banks tighten credit and infrastructure funding needs rise, with the market expanding 35% to $12.4 billion in 2025.
• The new Strategic Situations Fund will primarily invest in debt with equity conversion options, raised through Kotak Alternate's GIFT City unit.