India-focused fund manager Motilal Oswal Alternates (MO Alts) has announced the first close of its maiden private credit fund at Rs 1,700 crore ($187 million). Launched in January 2026, the India Credit Excellence Fund–I is targeting a total corpus of Rs 3,000 crore, including a greenshoe option.
Early last week, MO Alts made headlines when it made the final close of its fifth private equity (PE) fund at Rs 8,500 crore ($938 million).
The latest milestone highlights MO Alts’ 20-year journey in the industry and marks the firm’s first foray into private credit, expanding beyond its traditional focus on equity investments.
“The platform’s entry into this asset class is a natural extension of the its existing capabilities,” said Rakshat Kapoor, Head & CIO, Private Credit at MO Alts, in a statement.
The firm’s strategy focuses on senior secured loans for growth capital and distressed credit situations while also allowing for occasional participation in equity gains.
“India’s private credit market is at an inflexion point. We estimate the addressable market to grow to over Rs 10 lakh crore over the next few years,” added Kapoor.
Over the past two decades, MO Alts has built a distinctive track record across PE and real estate, having raised over Rs 23,000 crore across 11 funds and currently managing Rs 28,000 crore in assets.
In the PE space, the firm has clocked 51 investments and completed 24 successful exits, generating around $1 billion in liquidity with a realised MOIC of approximately 4x, it said in an earlier statement.
Its recent investments include Lahori Zeera, a well-known brand in the cumin-flavoured carbonated drink category; Sensacore, an innovation-driven medical devices company; and Vistaar Finance, a scaled secured lending player, among others.
