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, exceeding its initial target of $750 million. The fund, backed by global investors, will focus on mid-market businesses across various sectors.
Private EquityMotilal OswalAumMidmarket BusinessesInvestment FundsReal EstateAug 21, 2025
With this new fund, Motilal Oswal Alternates’ assets under management (AUM) will exceed $3.5 billion across private equity, real estate, and private credit. The firm recently completed the deployment of its $550 million fourth PE fund (IBEF IV), closed its $232 million sixth real estate fund (IREF VI), and is preparing to launch a private credit strategy.
The fifth fund will invest $40–80 million in mid-market businesses across consumer, financial services, healthcare, niche manufacturing, and technology. While typically a minority investor, the firm provides operational support alongside growth capital. About 14% of the fifth fund has already been committed, including investments in carbonated, non-alcoholic flavoured drinks maker Lahori Zeera.
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 delivered around 30% revenue and 40% profit growth over the past year, according to the statement.
Motilal Oswal Alternates is part of the Motilal Oswal Group, which manages $38 billion in equity AUM across asset management, wealth, securities, and investment banking. The group’s strong performance and strategic focus on mid-market businesses have positioned it as a key player in India’s growing private equity and alternatives market.
India’s private equity and alternatives market is experiencing record inflows, driven by strong GDP growth, robust consumer demand, and structural reforms. India's gross domestic product (GDP) grew 7.4% year-on-year in Q4 and 6.5% over the full FY25, according to Deloitte. Alternative Investment Funds (AIFs), which include private equity and other alternative vehicles, saw a 32% year-over-year increase in investments, reaching nearly ₹5.4 trillion by June 2025, according to investment advisory firm Multi-Act Trade and Investments.
Global LPs (limited partners, who invest in PE funds) are also reallocating to India as China slows. A Bain report notes that India was the only Asia-Pacific market to post double-digit growth in PE deal value and volume in 2024, as China’s share shrank. This trend highlights the growing attractiveness of India’s market for private equity and alternative investments.
Frequently Asked Questions
What is the target size of the India Business Excellence Fund V (IBEF V)?
The target size of the India Business Excellence Fund V (IBEF V) is $950 million, with the first close already securing $800 million.
Who are some of the key investors in the new fund?
Key investors in the new fund include the International Finance Corporation, US-based Adams Street Partners, Japanese investors, family offices, and high net worth individuals.
What sectors will the fifth fund focus on?
The fifth fund will focus on mid-market businesses across consumer, financial services, healthcare, niche manufacturing, and technology sectors.
How much has the Motilal Oswal Group and team committed to the fifth fund?
The Motilal Oswal Group and team have committed around 11% of the corpus to the fifth fund.
What is the current AUM of Motilal Oswal Alternates?
With the new fund, Motilal Oswal Alternates’ assets under management (AUM) will exceed $3.5 billion across private equity, real estate, and private credit.
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