Kotak Alts puts $78M into Lloyds Metals via private credit
What's the deal? Kotak Alternate Asset Managers has invested Rs 750 crore ($78.3 million) in non-convertible debentures (NCDs) issued by Lloyds Metals & Energy, the listed Indian mining and metals company.
Lloyds Metals is headquartered in Mumbai and operates across iron ore mining, sponge iron, and pellets, with a pipeline of downstream steel capacity expansion. The investment is structured as a private credit deal rather than an equity stake.
"Lloyds has built a strong and scalable mining platform with a clear path towards integration," said Rahul Chhaparwal, partner at Kotak Alts. "Our investment is aimed at supporting the company's next phase of growth and capacity expansion, while providing a flexible capital solution aligned with its long-term objectives."
Why now? Kotak Alts has been actively deploying capital from its second private credit fund and aims to hit the vehicle's final close soon. Earlier this month, it made another investment from the same fund in the highway sector.
Kotak Alts, part of Kotak Mahindra Group, was set up in 2005 and has raised, managed, or advised over $22 billion across asset classes including private equity, real estate, infrastructure, and private credit.
What could go wrong? NCDs are unsecured or secured debt instruments — and metals is a cyclical industry. A downturn in iron ore or steel prices could pressure Lloyds Metals' ability to service its debt obligations. The company's growth plans hinge on successful capacity expansion, which carries execution risk.
The signal: Private credit is booming in India. Large alternative asset managers like Kotak Alts are increasingly channelling capital into listed industrial companies through structured debt, filling a gap between traditional bank lending and equity markets. The metals and mining sector, buoyed by India's infrastructure push, is a prime beneficiary of this trend.
Read more: vccircle.com
