Motilal Oswal Alternates forays into maiden Private Credit Fund
Motilal Oswal Alternates today announced its foray into the white-hot market of private credit, having initiated regulatory processes to launch its private credit arm. The maiden fund proposes to raise INR 3,000 Cr., including the green shoe option of INR 1,500 Cr.
This marks the group’s entry into India’s fast-growing private credit market with a differentiated multi-pronged investment strategy, during a period when India’s credit landscape is undergoing a structural shift. With the economic tailwinds of the ongoing capex cycle, mid-market companies are increasingly seeking capital that is timely, flexible and non-dilutive. The proposed Fund’s investment focus is secured lending, bespoke customised solutions targeting mid to large corporates and generating risk adjusted returns from both straight debt yields and/or capturing equity linked upsides.
Commenting on the launch, Vishal Tulsyan, Executive Chairman, Motilal Oswal Alternates, said, “Motilal Oswal Alternates has built a distinctive franchise in private equity and real estate over the last two decades, and now expanding into private credit is a natural evolution of our business strategy. The private credit business will have synergies with our existing businesses and will draw upon the existing strength and vast knowledge base of Motilal Oswal Group. Overall, we are very excited to get into this already vibrant and burgeoning asset class.”
Sharing his perspective on the opportunity, Rakshat Kapoor, Head – Private Credit, Motilal Oswal Alternates, said, “India’s private credit market is relatively mature and growing rapidly. Mid-market corporates with strong operating track records are seeking flexible, non-dilutive growth capital suiting their financial needs. The proposed fund looks to invest in growth capital and special situation-oriented transactions. Leveraging on the Motilal Oswal Group’s deep equity investing framework, we envisage more transactions of hybrid nature, where we can look to have participation in equity upsides. We look to generate risk adjusted returns as regular private credit yield and/or also linked to equity upsides. The Motilal Oswal ecosystem is well positioned to leverage its wide network to seek these varied private credit opportunities and to draw upon the rich investing experience in managing other asset classes.”
Motilal Oswal Alternates has raised over INR 23,000 Cr. across 11 private equity and real estate strategies and is poised to exceed USD 3.5 billion in assets under management over the next year with the addition of the proposed private credit fund. The proposed Fund will complete the evolution of the platform into a full-spectrum alternatives firm, built on solid pillars of research depth, governance strength, and conviction-based underwriting.
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