Motilal Oswal Alternates to Launch Maiden Private Credit Fund

#PrivateCredit #MotilalOswal #AlternativeInvestment #CapitalMarkets #FundLaunch #MidMarketFinance

Chandigarh; Motilal Oswal Alternates has officially announced its plan to enter the private credit segment by initiating regulatory processes for its first private credit fund. This move marks the firm’s entry into India’s rapidly expanding private credit market.

🎯 Fund Strategy and Size

• Fundraising Target: The proposed fund aims to raise ₹3,000 crore, which includes a green-shoe option of ₹1,500 crore.

• Investment Focus: The fund will employ a diversified strategy, targeting credit opportunities in growth-oriented sectors.

• Targeted Situations: It plans to invest in:

  • Growth Capital: Funding mid-market companies seeking capital for expansion.

  • Dislocated Credit/Special Situations: Opportunities arising from market inefficiencies or unique corporate needs.

  • Performing Credit: Stable, structured, and collateralized lending situations.

• Transaction Type: The fund will focus on structured and collateralized lending, with an expectation that hybrid transactions—offering both regular private credit yields and potential equity upsides—will increase.

📈 Rationale for the Expansion

The timing aligns with a significant trend in the Indian market: the strengthening capital expenditure (capex) cycle has increased demand among mid-market companies for flexible, non-dilutive capital (capital that doesn’t require giving up ownership).

Vishal Tulsyan, Executive Chairman of Motilal Oswal Alternates, stated that the expansion into private credit is a “natural evolution” of the firm’s business strategy, leveraging its two-decade presence in private equity and real estate. The new venture is expected to benefit from synergies and the knowledge base of the larger Motilal Oswal Group.

Rakshat Kapoor, Head of Private Credit, noted the rising demand for flexible capital from mid-market corporates with established operating histories, stating the fund seeks to capitalize on these growth and special situation-oriented transactions.

🌟 Expanding Alternatives Platform

• Current AUM: Motilal Oswal Alternates has previously raised over ₹23,000 crore across 11 private equity and real estate strategies.

• Future Target: With the addition of the private credit fund, the platform expects to surpass USD 3.5 billion in assets under management (AUM) next year, solidifying its position as a full-spectrum alternatives manager.

#PrivateCredit #MotilalOswal #AlternativeInvestment #CapitalMarkets #FundLaunch #MidMarketFinance