India-focused fund manager Motilal Oswal Alternates has closed its fifth investment vehicle at Rs 8,500 crore ($938 millon), well above its initial target of Rs 6,500 crore ($717 million).
Unlike its previous funds, the India Business Excellence Fund V (IBEF V) has seen significant participation from global LPs, marking a notable shift in strategy.
“In the past, we primarily raised capital from domestic LPs. This time, it’s a 50:50 split between domestic and foreign investors,” said Vijay Dhanuka, MD and Co-head of Motilal Oswal Alternates (Private Equity).
IBEF V attracted commitments from a diversified global investor base spanning the US, Europe, Japan, the Middle East, India, and the broader Asian region. Notable investors include Adams Street Partners, Schroders, a fund managed by Neuberger Berman, International Finance Corporation (IFC), Oman Investment Authority, Axiom Asia, and several leading Japanese institutions.
On the domestic front, the fund secured backing from top banks, insurance companies, and a broad base of international and domestic family offices.
“Having a mix of both domestic and foreign LPs helps diversify the investor base, brings broader perspectives, and strengthens the fund’s global outreach,” said Rohit Mantri, also an MD & Co-head at Motilal Oswal Alternates.
In line with previous funds, over 10% of the capital has been committed by the sponsor, Motilal Oswal Group, and the Motilal Oswal Alternates team.
IBEF V will focus on consumer, financial services, niche manufacturing, healthcare, and technology-led businesses, continuing the investment strategy of its predecessors. The fund plans to invest approximately $40-100 million in mid- to late-stage businesses.
Established in 2006, Motilal Oswal Alternates manages approximately $3.3 billion across private equity (including IBEF V), real estate, and its recently launched private credit strategy.
To date, it has made 51 investments and completed 24 successful exits, generating around $1 billion in liquidity with a realised MOIC of approximately 4x, the firm said in a media statement.
Its recent investments include Lahori Zeera, a well-known brand in the cumin-flavoured carbonated drink category; Sensacore, an innovation-driven medical devices company; and Vistaar Finance, a scaled secured lending player, among others.
