Key Takeaways
- • Rahul Shah, Managing Partner of Kotak Alternate Asset Managers Limited, told ANI that Indian companies are increasingly turning to alternative investment funds (AIFs) for capital as GDP growth lifts corporate funding requirements.
- • Shah said AIFs provide investment routes into private equity, venture capital and increasingly private credit, helping investors diversify asset allocation beyond equities, bank deposits and fixed deposits.
- • Shah indicated that the growth of the industry could encourage larger alternative asset managers to pursue stock market listings, making them accessible to retail investors.
Summary
Indian companies are increasingly looking to alternative investment funds (AIFs) to raise capital as the economy expands, according to Rahul Shah, Managing Partner of Kotak Alternate Asset Managers Limited. Speaking to ANI on the sidelines of the 4th CII Alternative Investment Fund Summit 2026 in Mumbai on Wednesday, October 14, Shah said rising demand for capital from Indian businesses is helping AIFs become a more established part of the country's financial markets.
Shah attributed the trend to economic growth. "In India, because the requirement of capital is growing, inherently because the GDP is growing, you will see that corporates are also increasingly more open to exploring taking capital from AIFs," he said. AIFs pool money from investors and deploy it into assets beyond traditional stocks and bonds, providing capital through private equity, venture capital and private credit. Private equity and venture capital typically involve equity investments in companies, while private credit allows businesses to borrow from non-bank investors, offering an alternative to traditional bank lending and public equity markets.
Shah also pointed to rising household wealth as a driver. "The AIF industry is gradually getting into the mainstream, given that investors need more options to invest into as India gets wealthier," he said. He added that investors are looking beyond equities, bank deposits and fixed deposits, and that AIFs offer "a more risk-adjusted return." He said the expansion of the industry could also lead larger alternative asset managers to consider listing their shares, which would create an avenue for retail investors to access the sector.
The remarks were made at a time when corporate funding needs and demand for diversified investments are giving AIFs a larger role in India's financial system, according to the ANI report.
Shah attributed the trend to economic growth. "In India, because the requirement of capital is growing, inherently because the GDP is growing, you will see that corporates are also increasingly more open to exploring taking capital from AIFs," he said. AIFs pool money from investors and deploy it into assets beyond traditional stocks and bonds, providing capital through private equity, venture capital and private credit. Private equity and venture capital typically involve equity investments in companies, while private credit allows businesses to borrow from non-bank investors, offering an alternative to traditional bank lending and public equity markets.
Shah also pointed to rising household wealth as a driver. "The AIF industry is gradually getting into the mainstream, given that investors need more options to invest into as India gets wealthier," he said. He added that investors are looking beyond equities, bank deposits and fixed deposits, and that AIFs offer "a more risk-adjusted return." He said the expansion of the industry could also lead larger alternative asset managers to consider listing their shares, which would create an avenue for retail investors to access the sector.
The remarks were made at a time when corporate funding needs and demand for diversified investments are giving AIFs a larger role in India's financial system, according to the ANI report.
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