**Motilal Oswal Alternates Secures $800 Million for New Private Equity Fund**
Motilal Oswal Alternates has successfully raised $800 million for its fifth private equity fund, surpassing its initial goal of $750 million. This fund, known as the India Business Excellence Fund V (IBEF V), has attracted investments from a diverse group of global investors, including the International Finance Corporation and US-based Adams Street Partners. Additionally, Japanese investors, family offices, and high-net-worth individuals have contributed to the fund, which has the potential to reach a total corpus of $950 million. This marks the first close of the fund, with a final close anticipated by October. The Motilal Oswal Group and its team have committed approximately 11% of the total corpus.
With this new fund, Motilal Oswal Alternates’ assets under management (AUM) will exceed $3.5 billion, encompassing private equity, real estate, and private credit. The firm has recently completed the deployment of its $550 million fourth private equity fund (IBEF IV) and closed its $232 million sixth real estate fund (IREF VI). It is also preparing to launch a private credit strategy.
The fifth fund aims to invest between $40 million and $80 million in mid-market businesses across various sectors, including consumer goods, financial services, healthcare, niche manufacturing, and technology. While typically acting as a minority investor, the firm also provides operational support alongside growth capital. Notably, around 14% of the fifth fund has already been allocated, including an investment in Lahori Zeera, a producer of carbonated, non-alcoholic flavored drinks.
Since its inception in 2007, the private equity platform has made 50 investments and achieved 23 exits, generating approximately $1 billion in liquidity. Recent exits include IKF Finance, Happy Forgings, and Dairy Classic. The portfolio has demonstrated impressive growth, with around 30% revenue and 40% profit increases over the past year.
Motilal Oswal Alternates is part of the larger Motilal Oswal Group, which manages $38 billion in equity AUM across various sectors, including asset management, wealth management, securities, and investment banking. The private equity and alternatives market in India is experiencing record inflows, driven by strong GDP growth, robust consumer demand, and structural reforms. According to Deloitte, India’s GDP grew by 7.4% year-on-year in Q4 and 6.5% for the full fiscal year 2025, fueled by private investment and consumption.
Alternative Investment Funds (AIFs), which encompass private equity and other alternative vehicles, have seen a 32% year-over-year increase in investments, reaching nearly ₹5.4 trillion by June 2025, as reported by investment advisory firm Multi-Act Trade and Investments. As China’s growth slows, global limited partners are reallocating their investments to India. A Bain report highlights that India was the only Asia-Pacific market to achieve double-digit growth in private equity deal value and volume in 2024, while China’s share declined.
**FAQ**
**What is the focus of Motilal Oswal’s fifth private equity fund?**
Motilal Oswal’s fifth private equity fund focuses on investing in mid-market businesses across sectors such as consumer goods, financial services, healthcare, niche manufacturing, and technology, with investments typically ranging from $40 million to $80 million.
