Motilal Oswal Alternates, the private equity arm of Motilal Oswal Group, has raised $800 million in the first round of its new fund called India Business Excellence Fund V (IBEF V).
The fund has a target of $950 million, making it the company’s biggest private equity fund so far.
The new fund attracted top global and Indian investors, including the International Finance Corporation (IFC), Adams Street Partners, leading Japanese institutions, and several family offices and high-net-worth individuals (HNIs).
About 11% of the fund comes from the sponsor and Motilal Oswal team, while 60% is contributed by domestic institutions such as banks and insurance companies.
The firm aims to raise the remaining $150 million from global asset managers, sovereign wealth funds, and Indian financial institutions, with plans to complete the final close by October.
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“The fund has been the first institutional investor in several companies such as AU, Dixon, and Uno Minda, which scaled from under $100 million to multi-billion-dollar enterprises,” said Vishal Tulsyan, founder and chairman, Motilal Oswal Alternates. “Our past funds have consistently delivered IRRs of 25–30% in rupee terms.”
Fund V plans to invest between $40–80 million in mid-sized companies across sectors like consumer goods, financial services, specialized manufacturing, healthcare, and technology.
Since 2007, Motilal Oswal Alternates has invested in 50 companies and successfully exited 23 of them, generating about $1 billion in returns. Recent investments include Lahori Zeera, HealthKart, Lal Sweets, and Megafine Pharma, with around 14% ($125 million) of Fund V already invested in two companies.
The firm has exited businesses like IKF Finance, Happy Forgings, and Dairy Classic. It also expects 10 more investments worth $400 million to give returns in the next 1–2 years.
Motilal Oswal Alternates now manages about $3.5 billion across its private equity and real estate funds.
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