Mumbai, February 16 Motilal Oswal Alternate announced on Monday raising ₹8,500 crore from private equity investors, and the fund will be deployed as growth capital across companies.
The fund witnessed strong participation from both global and domestic investors, surpassing its initial target of ₹6,500 crore and completing the process within 10 months from the fund launch in mid-April 2025.
"Motilal Oswal Alternates, one of the pioneers of alternative investing in India, is pleased to announce the final close of its fifth private fund, India Business Excellence Fund V (IBEF V/Fund V), at its hard cap in February 2026, making it the largest in the firm's private equity history," Motilal Oswal Alternate (MOA) said in a release.
This is the first time that money has been raised from foreign investors in such a large amount, company executives said, adding that the majority of the first four funds were from domestic investors.
The foreign investors include IFC and Adams Street Partners, while domestically, leading banks, insurers, and family offices have shown interest.
Indian businesses are eager for capital, and we would like to back companies that have the potential for long-term relevance, Rohit Mantri, managing director and co-head of MOA, told reporters.
The subscriptions happened very quickly, and the entity had to "shut the tap" because of its interest for optimal size, which can deliver better returns, he said.
It will invest USD 40-100 million in up to 14 companies over the 7-8 year fund cycle and target an internal rate of return of over 20 per cent on the investments, he said.
These will largely be minority investments, and around a fifth of the fund may be deployed for majority stakes, Mantri said, adding that 20 per cent of the fund is already deployed, and it will reach 35 per cent by the end of March.
Like the earlier funds, the new platform will also focus on consumer, healthcare, financial services, and niche manufacturing, he said.
Over 90 per cent of the investments will be in profitable enterprises, executives said, adding that despite healthcare being a key theme, they have avoided hospitals, and despite the focus on financial services, they have avoided fintechs.