Kotak Mutual Fund plans to raise up to Rs 2,000 crore through its first private credit alternate investment fund (AIF), set to launch next quarter. Chief Investment Officer Deepak Agrawal stated that the fund will consist of 20% of the company’s capital. The AIF aims for an internal rate of return (IRR) of 15-16%, which is 3-4 percentage points higher than typical debt mutual funds. The fund will focus on lending opportunities, such as supporting promoters in buying out private equity investments or family members. Other asset managers, like Aditya Birla Sun Life and Nippon MF, are also exploring similar offerings.