New Delhi, Aug. 21 -- Motilal Oswal Alternates (MO Alts), the alternative investment arm of Motilal Oswal Group, said Thursday it has marked the first close of its fifth private equity fund at $800 million (about Rs 6,980 crore), exceeding its target.
The India Business Excellence Fund V attracted commitments from marquee global investors across the US, Europe, Japan, the Middle East, and Asia. Its limited partners include International Finance Corporation, Adams Street Partners, Japanese institutions, as well as family offices and high-net-worth individuals, MO Alts said in a statement.
The Motilal Oswal Group and its team contributed about 11% of the total commitments, it said.
The Mumbai-based firm launched the fund earlier this year with a target of raising $750 million, VCCircle reported in January. The fund-its largest-has a hard cap of $950 million.
The firm said it has either received soft commitments or is in the documentation stage with limited partners including global asset managers, sovereign wealth funds, domestic banks, and insurance companies to secure the remaining $150 million. It expects to complete the final close by the end of October.
The new PE fund follows MO Alts' sixth real estate fund, which hit final close last month at its hard cap of Rs 2,000 crore.
The firm said that its assets under management are set to cross $3.5 billion with the deployment of its fourth PE fund, which raised $550 million, the closing of the sixth real estate fund, and the launch of its private credit business. Earlier this year, MO Alts fully exited its second real estate credit fund, delivering a gross internal rate of return (IRR) of 18.3%. It had originally targeted an IRR of up to 25%, VCCircle reported.
The fifth PE fund will invest $40-80 million in mid-market companies across sectors such as consumer, financial services, niche manufacturing, healthcare, and technology-led businesses.
Since its inception in 2007, MO Alts has made 50 investments and completed 23 exits, generating about $1 billion in liquidity, the firm said. Its recent investments include Lahori Zeera, HealthKart, Lal Sweets, and Megafine Pharma. Under the fifth fund about 14% of the dry powder has already been committed, the firm said.
Its recent exits include IKF Finance (sold to Norwest Venture Partners), Happy Forgings (IPO and secondary exit), and Dairy Classic (sold to Kedaara Capital). A further 10 investments, worth about $400 million, are expected to see liquidity events in the next 12 to 24 months, the firm said.
Published by HT Digital Content Services with permission from VC Circle.