Motilal Oswal Alternates raises ₹8,500 crore private equity fund

Mumbai: Motilal Oswal Alternative announces price hike on Monday ₹8,500 crore will be raised from private equity investors and the fund will be used as growth capital across companies.

The fund exceeded its initial target with strong participation from both global and domestic investors. ₹6,500 crore and the process will be completed within 10 months from the fund launch in mid-April 2025.

“Motilal Oswal Alternates, one of the pioneers of alternative investment in India, is pleased to announce equity capital at the final close of the hard cap of its fifth private fund, India Business Excellence Fund V (IBEF V/Fund V), in February 2026, making it the largest in the company’s private equity history,” Motilal Oswal Alternate (MOA) said in a statement. he said.

Company executives stated that this was the first time such a large amount of money was collected from foreign investors, and added that most of the first four funds came from domestic investors.

While IFC and Adams Street Partners were among the foreign investors, leading domestic banks, insurers and family offices showed interest.

Indian business is hungry for capital and we will live to support companies that show promise of having long-term relevance, Rohit Mantri, managing director and co-chairman of MOA, told reporters.

He said subscriptions were happening so quickly that the organization had to “turn off the tap” out of interest in the optimum size that could yield better returns.

It said it would invest $40-100 million in up to 14 companies over a 7-8-year funding cycle and target an internal rate of return on investments of over 20 percent.

These will largely be minority bets and about one-fifth of the fund can be used for majority stakes, Mantri said, adding that 20 percent of the fund has already been deployed and the same will be increased to 35 percent by the end of March.

Like previous funds, the new platform will focus on consumer, healthcare, financial services and niche manufacturing, he said.

More than 90 percent of the bets will be on for-profit businesses, executives said, adding that so far they have avoided hospitals, although healthcare is the main theme, and fintechs, although the focus is on financial services.