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 announced that the fund will consist of 20% of the company’s own capital, targeting Rs 1,500-2,000 crore from external investors. The private credit sector has gained interest among asset managers, with peers like Aditya Birla Sun Life MF and Nippon MF launching similar funds. The AIF aims for an internal rate of return (IRR) of 15-16%, offering 3-4 percentage points above conventional debt mutual funds, focusing on lending opportunities related to buyouts.