 "Motilal Oswal Alternates' PE fund raises $800 million in first close")
Motilal Oswal Alternates has raised approximately $800 million in the first close of its fifth private equity vehicle, India Business Excellence Fund V, surpassing its $750 million target within months of launch. The fund has a hard cap of $950 million and is expected to complete its final close by October.
The fundraising adds to the momentum for India-focused private equity, as global investors bet on the country’s mid-market growth story. Commitments came from marquee backers, including the International Finance Corporation, Adams Street Partners, Japanese institutions, and global and domestic family offices. The Motilal Oswal group itself contributed around 11 per cent of the commitments, the fund said in a statement.
The new fund will invest between $40 million and $80 million in mid-market firms across consumer, financial services, manufacturing, healthcare, and technology. Approximately 14 per cent of the capital has already been committed, including an investment in the beverage brand Lahori Zeera.
With this new fund, Motilal Oswal Alternates’ assets under management will exceed $3.5 billion across private equity, real estate, and private credit. The firm has made 50 investments since 2007, with 23 exits generating approximately $1 billion in liquidity. Recent exits include IKF Finance and Happy Forgings.
Founder Vishal Tulsyan said that India’s economy, projected to grow from $4 trillion to $10 trillion over the next decade, presents “exciting times ahead” for scaling mid-market businesses.