Motilal Oswal Alternates raises $800 million in first close of Fund V, Targets $950 Mn

Motilal Oswal Alternates, the private equity division of Motilal Oswal Group, raised $800 million in the first close of its new fund, India Business Excellence Fund V (IBEF V). With a maximum target of $950 million, this is the firm’s biggest private equity fund so far.

The new fund drew top global and Indian investors, including the International Finance Corporation (IFC), Adams Street Partners, major Japanese institutions, and several family offices and HNIs. Around 11% of the fund comes from the sponsor and Motilal Oswal team, while 60% is contributed by domestic institutions like banks and insurers.

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The firm plans to raise the remaining $150 million from global asset managers, sovereign wealth funds, and Indian financial institutions, aiming for a final close by October.

“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 $40–80 million in mid-market companies across sectors like consumer, financial services, niche manufacturing, healthcare, and technology-driven businesses.

Since 2007, Motilal Oswal Alternates has made 50 investments and 23 successful exits, generating about $1 billion in returns. Recent deals include Lahori Zeera, HealthKart, Lal Sweets, and Megafine Pharma, with nearly 14% ($125 million) of Fund V already invested in two companies.

The firm has exited investments such as IKF Finance, Happy Forgings, and Dairy Classic, and expects 10 more investments worth $400 million to see liquidity events in the next 12–24 months.

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Motilal Oswal Alternates now manages around $3.5 billion across private equity and real estate.