Motilal Oswal Alternates led the investment round: statement

Motilal Oswal Alternates led the investment round: statement

Motilal Oswal Alternates, the private equity arm of the Motilal Oswal Group, has successfully raised $800 million in the first close of its India Business Excellence Fund V (IBEF V), surpassing its initial target of $750 million [1]. The fund, with a hard cap of $950 million, is expected to complete its final close by October [1].

The new fund attracted marquee global and domestic investors, including the International Finance Corporation (IFC), Adams Street Partners, leading Japanese institutions, and several global and Indian family offices and high net worth individuals (HNIs) [2]. Approximately 11% of the fund corpus has been committed by the sponsor and the Motilal Oswal team, while 60% of the commitments came from domestic institutions such as banks and insurers [2].

Motilal Oswal Alternates expects to raise the remaining $150 million from global asset managers, sovereign wealth funds, and Indian financial institutions before the targeted final close [2]. The firm aims to invest between $40 million and $80 million in mid-market companies across sectors such as consumer, financial services, niche manufacturing, healthcare, and technology-led businesses [2].

The new fund will invest in mid-market firms, with approximately 14% of the capital already committed, including an investment in the beverage brand Lahori Zeera [1]. This investment adds to the firm's existing portfolio of 50 investments since 2007, with 23 successful exits generating about $1 billion in liquidity [2].

Motilal Oswal Alternates currently manages around $3.5 billion across private equity and real estate strategies, and the new fund will help increase this figure [2]. Founder Vishal Tulsyan highlighted the growth potential of India's economy, projected to grow from $4 trillion to $10 trillion over the next decade, presenting "exciting times ahead" for scaling mid-market businesses [1].

References:
[1] https://www.business-standard.com/companies/news/motilal-oswal-pe-fund-raises-800-million-first-close-125082101018_1.html
[2] https://economictimes.indiatimes.com/markets/stocks/news/motilal-oswal-pe-raises-800-million-in-first-close-of-fund-v/articleshow/123432671.cms