- New fund takes Motilal Oswal Alternates’ AUM beyond USD 3.5 billion across Private Equity, Real Estate & Private Credit
- Commitments from IFC, Adams Street Partners, Japanese institutions and family offices underline strong global confidence
- Fund V to invest USD 40–80 million in scalable mid-market businesses across consumer, financial services, manufacturing, healthcare and technology
MUMBAI, India, August 21, 2025: Motilal Oswal Alternates, a leading private equity firm, has achieved a strong first close of c. USD 800 million in its fifth fund, India Business Excellence Fund V (IBEF V/ Fund V). The fund was launched in mid-April with a target of USD 750 million and a hard cap of upto USD 950 million.
This milestone highlights Motilal Oswal Alternates’ focus on supporting promoters and businesses with strong growth potential. With the deployment of its fourth PE fund (IBEF IV, USD 550 million), and the final close of its sixth real estate fund (IREF VI, USD 232 million) and launch of its private credit business, the firm’s AUM will cross USD 3.5 billion across private equity, real estate and private credit.
Fund V has attracted commitments from marquee investors across the US, Europe, Japan, the Middle East and Asia, including International Finance Corporation (IFC), Adams Street Partners, premier Japanese institutions, as well as global and domestic family offices and HNIs.
As in earlier funds, the Motilal Oswal Group and team have contributed ~11% of commitments. For the remaining up to USD 150 million, the firm has received soft commitments/ in the midst of documentation with investors including Global Asset Management Firms, Sovereign Wealth Funds, Domestic Banks and Insurance companies amongst others and expects to do a final close by end October 2025.
Focus on Growth and Value Creation
Fund V will invest ~USD 40–80 million in mid-market companies across consumer, financial services, niche manufacturing, healthcare and technology-led businesses. The strategy is to back mid-market companies with strong market positions in large, scalable industries. While primarily a minority investor, the firm plays an active role—providing growth capital as well as operational support through its investment team, operating partners and functional experts.
Leveraging the Motilal Oswal Ecosystem
The fund builds on the firm’s track record of identifying high-growth businesses early in their journey. It will also leverage the wider Motilal Oswal Group’s strengths—USD 38 billion equity AUM, deep research infrastructure, investment banking expertise, and a distribution network spanning 99% of India’s pincodes—offering unique local insights and reach.
QGLP Philosophy and Track Record
Motilal Oswal Alternates follows its proprietary QGLP (Quality, Growth, Longevity and Price) philosophy, distilled from ~40 years of investing in India.“Winners are those that sustain growth. Getting the Q—quality of business and management—right is critical,” said Mr. Vishal Tulsyan, Founder & Chairman, Motilal Oswal Alternates.
“We have been fortunate to back companies such as AU, Dixon, Uno Minda and others when they were sub-USD 100 million businesses. Today, they have scaled to USD 5–10 billion+ in value.”
He added, “With India’s GDP growing ~2.5x the world average, we see exciting times ahead as the economy moves from USD 4 trillion today to USD 10 trillion in the next decade. 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.”
Strong Track Record of Growth and Exits
Since its inception in 2007, Motilal Oswal Alternates has made 50 investments and completed 23 successful exits, generating ~USD 1 billion in liquidity. Portfolio companies have delivered ~30% average revenue growth and ~40% profit growth over the past year.
Recent investments include Lahori Zeera (cumin-flavoured carbonated drink), HealthKart (sports nutrition), Lal Sweets (packaged Indian sweets), and Megafine Pharma (niche API manufacturer). Under Fund V, ~14% of capital has already been committed across two investments, including Lahori Zeera.
Recent exits include IKF Finance (sold to Norwest PE), Happy Forgings (IPO and secondary exit), and Dairy Classic (Dairy Day, sold to Kedaara Capital). A further 10 investments, worth ~USD 400 million, are expected to see liquidity events in the next 12–24 months.
Seasoned Team with Rich Hands-On Experience
Motilal Oswal Alternates has a long-tenured team of 31 professionals, including 23 investment specialists, two operating partners, and a six-member functional experts’ team. The fund is led by co-founders and veteran investors Mr. Raamdeo Agrawal and Mr. Vishal Tulsyan.
The leadership team includes four Managing Directors — Mr. Rohit Mantri (Healthcare), Mr. Vijay Dhanuka (Consumer), Mr. Prakash Bagla (Manufacturing), and Mr. Vinit Mehta (Financial Services). Recently, Mr. Mantri and Mr. Dhanuka, both with over a decade at the firm, were elevated as Co-heads of the fund. A significant portion of the senior leadership is homegrown, giving the firm a strong competitive edge.
The team provides strategic guidance, operational support (across business excellence, HR, technology, and ESG), and capital structuring expertise to portfolio companies.
About Motilal Oswal Alternates – https://www.motilaloswalalt.com/
Motilal Oswal Alternates, a prominent alternative investment platform in India, manages approximately USD 3.2 billion across private equity (incl. Fund V) and real estate strategies. Established in 2006, the private equity business manages USD 2 billion across funds, having backed mid-market businesses and enabling their next phase of expansion.
In 2009, Motilal Oswal Alternates forayed into real estate, providing early-stage capital to established developers across India’s top cities. Today, the real estate platform manages approximately USD 1.2 billion across 190 investments and has successfully delivered 125 exits.
Building on its track record and domain expertise in the mid-market space, Motilal Oswal Alternates plans to launch a private credit fund with a target size of USD 200-300 million in Q4 CY2025.
With Private Equity Fund V and the new private credit offering, total assets under management are projected to exceed USD 3.5 billion within the next 12 months – solidifying its position further as a full-scale alternatives asset manager.
Motilal Oswal Alternates operates as an independent platform within the Motilal Oswal Group (MO Group), a well-regarded equity-focused financial services group in India. MO Group has businesses across Securities, Asset Management, Wealth Management, Alternatives, Housing Finance, and Investment Banking, and manages approximately USD 38 billion in equity AUM.
Leveraging MO Group’s equities heritage and deep market presence, Motilal Oswal Alternates is committed to supporting transformative businesses, enabling them to scale and go public, while generating superior risk-adjusted returns for its investors. For more information, please visit https://www.motilaloswalalt.com
