Kotak Mutual Fund plans to raise up to Rs 2,000 crore through its first private credit alternate investment fund (AIF), set to launch in the next quarter. Chief Investment Officer Deepak Agrawal stated that the fund will include 20% of the company’s own capital. The targeted fund size is between Rs 1,500-2,000 crore, aiming to offer investors an internal rate of return (IRR) 3-4 percentage points higher than typical debt mutual funds, which generally target an IRR of 15-16%. The AIF will focus on lending for buyouts, such as private equity exits.