Motilal Oswal eyes Rs 900-cr fund

Motilal Oswal Private Equity Advisors (MOPE), a wholly owned subsidiary of financial services group Motilal Oswal Financial Services, plans to raise its second private equity (PE) fund, India Business Excellence Fund-II, with a corpus of Rs 750-900 crore. MOPE’s first fund, Rs 550 crore India Business Excellence Fund-I has been fully deployed.

The company is looking to close the fund raise for the second fund by December 2012. MOPE, which had announced the first closure at Rs 350 crore in February 2012, raised Rs 500 crore by June 2012. The company is looking at Rs 750 crore in the near future.

A senior official of MOPE told Business Standard while the initial target is Rs 750 crore, the company is hopeful of raising Rs 900 crore.

He said the final call on the sum will be taken after seeing the interest by investors. MOPE’s second PE fund comes at a time when many PE funds are struggling to raise funds.

FUND PORTFOLIOS

Growth capital fund for mid-market companies

• Rs 550-crore India Business Excellence Fund (IBEF) I — fully deployed
• Rs 900-crore India Business Excellence Fund (IBEF) II — in the process of raising funds

Real estate fund for metro & Tier-I residential projects  

• Rs 200-crore India Realty Excellence Fund (IREF) I — substantially deployed
• Rs 550-crore India Realty Excellence Fund (IREF) II — in the process of raising funds

Other than the sector-agnostic (catering to more than one sector) PE fund, MOPE also has a good presence in real estate, where it has a corpus of Rs 200 crore that has been substantially deployed. The company is also raising a Rs 500-crore domestic real estate fund. The average ticket size per project is typically in the range of Rs 20-30 crore. The fund has already made six investments across asset classes.