Team Startupcity

• $800M raised in first close of IBEF V; target set at $750M with a hard cap of $950M.
• Assets under management (AUM) to cross $3.5B across PE, real estate, and private credit.
• Fund V to focus on mid-market investments ($40M–$80M) in consumer, financials, healthcare, tech, and niche manufacturing.

Motilal Oswal Alternates has announced the first close of its fifth private equity fund, India Business Excellence Fund V (IBEF V), at $800 million. Launched in April, the fund exceeded its initial $750 million target and is capped at $950 million.

This milestone comes as the firm nears full deployment of its $550 million IBEF IV and completes raising its $232 million real estate fund, IREF VI.

 Vishal Tulsyan, Founder & Chairman, Motilal Oswal Alternates said, 

Winners are those who sustain growth. Getting the quality of business and management right is critical. We were fortunate to back companies such as AU, Dixon, and Uno Minda when they were under $100 million and have now scaled to $5–10 billion+

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With the launch of its private credit vertical, the firm stated that its AUM will surpass $3.5 billion, spanning private equity, real estate, and private credit.

The first close saw strong participation from marquee investors across the US, Europe, Japan, the Middle East, and Asia. Backers include International Finance Corporation (IFC), Adams Street Partners, Japanese institutions, global and domestic family offices, and HNIs. As with earlier funds, the Motilal Oswal Group and team committed around 11% of the corpus.

For the remaining $150 million, the firm has received soft commitments and is finalising documentation with global asset managers, sovereign wealth funds, domestic banks, and insurers.

Fund V will primarily target mid-market growth investments ranging from $40 million to $80 million across sectors including consumer, financial services, healthcare, technology-led businesses, and niche manufacturing.

“With India’s GDP growing at 2.5x the global average, the economy is on track to expand from $4 trillion to $10 trillion over the next decade. Fund V enables us to continue backing strong, scalable businesses and create lasting value,” Tulsyan added.

Since 2007, Motilal Oswal Alternates has invested in 50 companies and exited 23, generating $1 billion in liquidity. Its portfolio posted 30% revenue growth and 40% profit growth over the past year.

Recent bets include Lahori Zeera (cumin-flavoured drink), HealthKart (sports nutrition), Lal Sweets (packaged confectionery), and Megafine Pharma (speciality API maker). Notably, about 14% of Fund V has already been deployed, including an investment in Lahori Zeera.