Motilal Oswal Alternates has successfully closed $800 million for its fifth private equity fund, India Business Excellence Fund V (IBEF V). The fund targets $750 million, with a hard cap of $950 million, focusing on mid-market investments in sectors like consumer goods, healthcare, and technology. The strong fundraising reflects investor confidence and a robust pipeline. Over 14% of the fund is already deployed in projects including Lahori Zeera.
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Motilal Oswal Alternates has successfully completed the first close of its fifth private equity fund, India Business Excellence Fund V (IBEF V), at $800 million. Initially targeting $750 million, the fund carries a hard cap of up to $950 million, reflecting strong investor confidence and robust deal pipeline prospects.
The announcement follows the firm’s near completion of its $550 million fourth private equity fund (IBEF IV) and advancing its $232 million sixth real estate fund (IREF VI). With these funds, Motilal Oswal Alternates is scaling its investment footprint across private equity, real estate, and private credit, with assets under management (AUM) poised to surpass $3.5 billion.
Vishal Tulsyan, Founder and Chairman of Motilal Oswal Alternates, emphasized the importance of sustained growth and backing quality businesses:
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“Winners are those who sustain growth. Getting the Q—quality of business and management—right is critical. We have been fortunate to back companies such as AU, Dixon, Uno Minda and others when they were sub-$100 million businesses. Today, they have scaled to $5–10 billion+ in value.”
IBEF V targets mid-market investments ranging from $40 million to $80 million, focusing primarily on sectors such as consumer goods, financial services, healthcare, technology-led businesses, and niche manufacturing. This focused approach aims to accelerate growth in companies with scalable business models and strong fundamentals.
The latest fund has attracted marquee investors globally, including International Finance Corporation (IFC), Adams Street Partners, and leading Japanese institutions. Other stakeholders encompass global and domestic family offices, high-net-worth individuals, sovereign wealth funds, domestic banks, and insurance companies.
In line with previous funds, the Motilal Oswal Group and the investment team have committed approximately 11% of the fund’s capital. For the remaining $150 million, soft commitments are secured with ongoing documentation involving global asset managers and sovereign wealth funds from the GCC region, among others.
India’s dynamic economic growth serves as a backdrop for IBEF V’s strategy. With the GDP expanding at roughly 2.5 times the global average, the economy is projected to nearly triple from $4 trillion today to about $10 trillion over the next decade.
Tulsyan remarked, “Fund V allows us to continue our legacy of partnering with businesses with strong fundamentals and scalable models, accelerating their growth and creating lasting value.”
Since inception in 2007, Motilal Oswal Alternates has backed 50 companies and exited 23 of them, generating close to $1 billion in liquidity. Its portfolio has demonstrated resilient performance with an average revenue growth of 30% and profit growth of 40% over the past year alone.
Recent investments under the firm’s portfolio include:
Lahori Zeera: A cumin-flavored carbonated beverage gaining market traction.
HealthKart: A leading sports nutrition brand.
Lal Sweets: A packaged confectionery company expanding its footprint.
Megafine Pharma: A specialty API manufacturer.
Within Fund V, approximately 14% of the corpus has been deployed across two deals, including the investment in Lahori Zeera, signaling swift action in capital allocation.
Motilal Oswal Alternates’ consistent strategy of investing in mid-market companies with strong growth potential has positioned it as a key player in India’s private equity landscape. By leveraging its deep sector expertise and a proven track record, the firm is well-equipped to capitalize on India’s expanding economy and evolving market dynamics.
With Fund V’s robust closing and diverse investor base, Motilal Oswal Alternates is poised to sustain its growth trajectory and deliver lasting value to stakeholders across private equity, real estate, and private credit domains.
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