Motilal Oswal Alternates' Fund V Raises USD 800 Mn in First Close, Targets USD 950 Mn Fund V aims to invest between USD 40 million and USD 80 million in mid-market companies across consumer, financial services, niche manufacturing, healthcare and technology-led businesses.
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Motilal Oswal Alternates, the private equity arm of the Motilal Oswal Group, has announced the first close of its fifth fund, India Business Excellence Fund V (IBEF V), at approximately USD 800 million. The fund was launched in April this year with a target of USD 750 million and has set a hard cap of up to USD 950 million.
With the deployment of its previous private equity fund worth USD 550 million, the final close of its sixth real estate fund at USD 232 million, and the launch of a private credit business, Motilal Oswal Alternates' assets under management are set to cross USD 3.5 billion across private equity, real estate and private credit.
Fund V aims to invest between USD 40 million and USD 80 million in mid-market companies across consumer, financial services, niche manufacturing, healthcare and technology-led businesses. While it largely takes minority positions, the firm provides both growth capital and operational support through its team of investment professionals and industry experts.
Vishal Tulsyan, Founder and Chairman of Motilal Oswal Alternates, said, "Winners are those that sustain growth. Getting the quality of business and management right is critical. We have been fortunate to back companies such as AU, Dixon and Uno Minda when they were sub-USD 100 million businesses. Today, they have scaled to multi-billion-dollar enterprises."
He further added, "With India's GDP growing nearly two and a half times the world average, we see exciting times ahead as the economy expands from USD 4 trillion today to USD 10 trillion in the next decade. Fund V allows us to continue our legacy of partnering with businesses with strong fundamentals and scalable models."
Under Fund V, nearly 14 percent of the capital has already been committed, including an investment in Lahori Zeera.
Fund V has received commitments from a wide base of investors across the US, Europe, Japan, the Middle East and Asia. Global institutions such as the International Finance Corporation, Adams Street Partners, prominent Japanese institutions, as well as domestic and international family offices and high net-worth individuals have backed the fund, the firm said in an official release.
As with earlier funds, the Motilal Oswal Group and its team have contributed around 11 percent of commitments. The firm is also in advanced discussions with several global asset managers, sovereign wealth funds, domestic banks and insurers to raise the remaining capital, with a final close expected by October 2025.
Since its inception in 2007, Motilal Oswal Alternates has invested in 50 companies and completed 23 successful exits, generating around USD 1 billion in liquidity.
Recent investments include Lahori Zeera, HealthKart, Lal Sweets and Megafine Pharma.
Recent exits include IKF Finance, Happy Forgings and Dairy Classic, while another 10 investments worth nearly USD 400 million are expected to see liquidity events in the next two years.
