Motilal Oswal Alternates on Thursday said it has raised about $800 million in the first close of its fifth private equity vehicle, India Business Excellence Fund V (IBEF V), surpassing its initial target of $750 million.
The fund, which has a hard cap of $950 million, was launched in April and is expected to see its final close by October 2025.
The close takes the firm’s alternative assets under management past $3.5 billion across private equity, real estate, and private credit. The fourth PE fund, IBEF IV, closed at $550 million, while the firm also recently wrapped up fundraising for its sixth real estate fund at $232 million and rolled out a private credit strategy.
IBEF V has secured commitments from global institutions, including International Finance Corporation (IFC), Adams Street Partners, Japanese investors, Middle Eastern and Asian LPs, as well as domestic and global family offices. About 11% of the commitments have come from the Motilal Oswal Group and its team.
The firm said it has received additional soft commitments of up to $150 million from asset managers, sovereign wealth funds, domestic banks and insurers, which are under documentation.
Earlier this year, IFC proposed an equity investment of up to $60 million in the fund. In addition to the proposed equity stake, teh lender said it is also considering a co-investment envelope of up to $60 million under its delegated authority framework, bringing the total potential investment to $120 million.
The fund is structured as a closed-ended, contributory determinate trust under the India Trusts Act of 1982. It is also registered with the International Financial Services Centres Authority (IFSCA) as a Category II Alternative Investment Fund under the 2022 regulations.
The fund will invest $40-80 million in mid-market companies across consumer, financial services, healthcare, technology-led businesses, and niche manufacturing. While it typically takes minority positions, the firm adopts an active approach by providing growth capital and operational support through its investment professionals, operating partners, and functional experts.
Since its inception in 2007, Motilal Oswal Alternates has invested in 50 companies and exited 23, returning around $1 billion in liquidity. Recent exits include IKF Finance, Happy Forgings and Dairy Classic. The firm said 10 more investments, valued at $400 million, are expected to generate liquidity in the next 12-24 months.
IBEF V has already committed about 14% of its corpus, including to the beverage brand Lahori Zeera. Other recent portfolio additions across funds include HealthKart, Lal Sweets, and API manufacturer Megafine Pharma.
