New Delhi, June 16 -- The International Finance Corporation has invested $60 million in Motilal Oswal Alternates's fifth fund in a deal that will allow it to co-invest in the Indian private equity firm's portfolio companies.

This is the World Bank Group company's third and largest equity investment in an MO Alternates fund.

The India Business Excellence Fund V G managed by MO Alternates focuses on mid-market companies in the consumer, financial services, life sciences, and manufacturing sectors. IFC's investment in it comes attached with a $60 million co-investment envelope that will allow it to invest in companies alongside MO Alternates's latest fund.

Equity co-investment enables banks like IFC to invest in future investments made by...