Motilal Oswal private equity arm raises Rs 4,500 cr for new platform

A private equity fund promoted by domestic brokerage Motilal Oswal announced that it has garnered commitments of Rs 4,500 crore for a new platform

A private equity fund promoted by domestic brokerage Motilal Oswal on Monday announced that it has garnered commitments of Rs 4,500 crore for a new platform.

The fund was raised primarily from high net-worth individuals and family offices by Motilal Oswal Alternatives (MOA) for the India Business Excellence Fund (IBEF) IV, as per an official statement.

With the latest close, the overall assets under management for MOA touches Rs 14,000 crore, and three-fourths of the money or commitments have been sourced from domestic investors from 55 cities.

The newest fund is sector agnostic one which will look for opportunities in the consumer, financial services, life sciences and niche manufacturing, it said.

Acknowledging the growth in the startup ecosystem, it said 10-15 per cent of the investments will be in the tech sector, it added.

Even before the final close, IBEF IV has already made two investments -- in Mankind Pharma-promoted diagnostic chain Pathkind and tile manufacturer Simpolo, the statement said.

In addition, definitive agreements for two more investments have already been signed, it said, adding that half of the overall funds raised will be committed by March 2023.

MOA, which started in FY07, has made 35 investments and 15 exits till now, it said, adding that some of its notable bets include facilities management company Updater Services, AU Financiers which has now turned into a small finance bank, Dixon Technologies, and Molbio Diagnostics.

The statement claimed the company has the ability to spot opportunities in tier-II and tier-III centres and invest in them.