Motilal Oswal Alternate raises Rs 8,500 crore from global and domestic investors

Motilal Oswal Alternate announced raising Rs 8,500 crore from global and domestic investors for its fifth private equity fund, India Business Excellence Fund V (IBEF V), surpassing its initial target of Rs 6,500 crore. | Photo Credit: iStockphoto

Motilal Oswal Alternate on Monday announced raising Rs 8,500 crore from private equity investors, and the fund will be deployed as growth capital across companies.

The fund witnessed strong participation from both global and domestic investors, surpassing its initial target of Rs 6,500 crore and completing the process within 10 months from the fund launch in mid-April 2025.

“Motilal Oswal Alternates, one of the pioneers of alternate investing in India, is pleased to announce equity the final close of its fifth private fund, India Business Excellence Fund V (IBEF V/Fund V), at its hard cap in February 2026, making it the largest in the firm’s private equity history,” Motilal Oswal Alternate (MOA) said in a release.

Foreign Investor Entry

This is the first time that money has been raised from foreign investors in such a big quantum, company executives said, adding that a bulk of the first four funds were from domestic investors.

The foreign investors include IFC and Adams Street Partners, while domestically, leading banks, insurers and family offices have shown interest.

Capital for Growth

Indian business is hungry for capital, and we would live to back companies which hold the promise to have long-term relevance, Rohit Mantri, managing director and co-head of MOA, told reporters.

The subscriptions happened very quickly, and the entity had to “shut the tap” because of its interest for optimal size, which can deliver better returns, he said.

Investment Plans

It will invest USD 40-100 million in up to 14 companies over the 7-8 year fund cycle and target an internal rate of return of over 20 per cent on the investments, he said.

These will be largely minority bets, and around a fifth of the fund may get deployed for majority stakes, Mantri said, adding that 20 per cent of the fund is already deployed and the same will be taken to 35 per cent by the end of March.

Sector Strategy

Like the earlier funds, the new platform will also focus on consumer, healthcare, financial services and niche manufacturing, he said.

Over 90 per cent of the bets will be on profit-making enterprises, executives said, adding that so far, they have avoided hospitals despite healthcare being a key theme and also fintechs despite the focus on financial services.

Published on February 16, 2026