The new fund attracted marquee global and domestic investors, including International Finance Corporation (IFC), Adams Street Partners, leading Japanese institutions, as well as several global and Indian family offices and HNIs. About 11% of the fund corpus has been committed by the sponsor and the Motilal Oswal team, while 60% of the commitments came from domestic institutions such as banks and insurers.
The firm expects to raise the balance $150 million from global asset managers, sovereign wealth funds, and Indian financial institutions, before its targeted 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 will typically invest $40–80 million in mid-market companies across sectors such as consumer, financial services, niche manufacturing, healthcare, and technology-led businesses.
Since inception in 2007, Motilal Oswal Alternates has made 50 investments and achieved 23 successful exits, generating about $1 billion in liquidity. Recent deals include Lahori Zeera, HealthKart, Lal Sweets, and Megafine Pharma, with nearly 14% or $125 million of Fund V’s capital already committed across two investments.The firm has also clocked a string of exits, including IKF Finance, Happy Forgings, and Dairy Classic. A further 10 investments worth $400 million are expected to see liquidity events in the next 12–24 months.
Motilal Oswal Alternates currently manages around $3.5 billion across private equity and real estate strategies.