Indian companies are increasingly looking to alternative investment funds (AIFs) to raise capital as the economy expands and businesses seek more funding options, according to Rahul Shah, Managing Partner, Kotak Alternative Asset Managers Limited.
Speaking exclusively to ANI on the sidelines of the 4th CII Alternative Investment Fund Summit 2026 in Mumbai, Shah said growing demand for capital from Indian businesses is helping alternative investment funds become a more established part of the country's financial markets.
"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.
Alternative investment funds pool money from investors and invest in assets beyond traditional stocks and bonds. They provide capital to businesses through avenues such as private equity, venture capital, and private credit.
Shah said these investment options are gaining importance as companies look for additional sources of funding, while investors seek to spread their investments across different asset classes.
"AIFs are providing options for people to invest into private equity, venture capital, and also increasingly private credit. And that helps in diversifying their asset allocation," he told ANI.
