Motilal Oswal Financial Services is poised to enter India’s booming private credit market with former Modulus Alternatives Investment Managers’ head, Rakshat Kapoor, set to head the venture, Bloomberg reported on Tuesday.
Kapoor has resigned from Modulus Alternatives Investment Managers, where he served as chief investment officer and head of private credit, the report said.
Motilal’s private credit business will fall under the umbrella of Motilal Oswal Alternates and is expected to raise about $250 million through its maiden private credit fund over the next four to six months.
Motilal joins more than half a dozen managers that have launched or closed credit funds in just the past month, signalling a growing appetite among investors and borrowers for structured, non-dilutive capital.
Last month, Avendus Group raised over Rs 1,000 crore ($118 million) in the first close of its third private credit fund.
Separately, Neo Asset Management secured $233 million for its second flagship vehicle, while Franklin Templeton marked the first close of its debut India-focused credit AIF at Rs 205 crore.
Synergy Capital raised $715 million in the first close of its third Asia-focused fund, targeting a $1-billion final close with India at its core.
Kotak is reportedly aiming for a $2 billion fundraise, and InCred pulled in $70 million for special situations.
According to PwC, India’s private credit market has grown more than 10x over the past decade and now has assets under management (AUM) nearing $25 billion. Yet, its credit-to-GDP ratio remains significantly lower than developed markets, leaving ample headroom for further growth. The firm estimates India could account for 30% of all APAC private credit fundraising by 2025.
