India-focused fund manager Motilal Oswal Alternates (MO Alts) has begun the regulatory process to launch its private credit platform, marking its entry into the fast-growing segment.
Its debut fund aims to raise Rs 3,000 crore ($336 million), including a green-shoe option of Rs 1,500 crore, per an announcement.
Over the past 20 years, Motilal Oswal Alternates has established a presence in private equity and real estate. The firm made headlines earlier this year when it made the first close of its fifth PE vehicle at $800 million, surpassing its initial target of $750 million.
“The private credit business will have synergies with our existing businesses and will draw upon the existing strength…Overall, we are very excited to get into this already vibrant and burgeoning asset class,” said Vishal Tulsyan, Executive Chairman, Motilal Oswal Alternates.
India’s private credit market is relatively mature and growing rapidly.
“Mid-market corporates with strong operating track records are seeking flexible, non-dilutive growth capital suiting their financial needs. The proposed fund looks to invest in growth capital and special situation-oriented transactions,” said Rakshat Kapoor, Head – Private Credit, Motilal Oswal Alternates.
Motilal Oswal Alternates has raised more than Rs 23,000 crore across 11 private equity and real estate strategies and is expected to surpass $3.5 billion in assets under management over the next year with the launch of its proposed private credit fund.
In private equity, its portfolio includes Parag Milk Foods (dairy), Mrs. Bectors Food Specialties (biscuits and bakery), Kurlon Enterprise (mattresses), and Fincare Small Finance Bank, among others. Over the past two decades, MO Alts has established a presence in private equity and real estate.
