Motilal Oswal Alternates raises ₹8,500 crore for fifth PE Fund

Motilal Oswal Alternates said it had raised ₹8,500 crore for fifth private equity fund, India Business Excellence Fund V (IBEF V/Fund V), making it the largest in the firm’s private equity history.

“The fund witnessed strong participation from both global and domestic investors, significantly surpassing its initial fundraising target of Rs 6,500 crore and completing the process in under ten months from the fund launch in mid-April 2025. The successful close reinforces Motilal Oswal Alternates’ continued focus on backing high-growth, mid- to late-stage businesses and partnering with visionary entrepreneurs building enduring, category-defining companies,” the firm said.

IBEF V received commitments from a diversified global investor base spanning the US, Europe, Japan, the Middle East, India and the broader Asian region. Investors include Adams Street Partners, Schroders, one of the funds managed by Neuberger Berman, International Finance Corporation (IFC), Oman Investment Authority, Axiom Asia, leading Japanese institutions, domestic financial institutions including leading banks and insurance companies, along with a broad base of reputed international and domestic family offices.

With the final close of IBEF V (Rs 8,500 crore), the successful raise of IREF VI (₹2,000 crore) and the launch of private credit, the firm’s total AUM now exceeds $3.3 billion.

Fund V shall invest approximately $40–100 million in mid- to late-stage businesses across the fund’s core sectors including consumer, financial services, niche manufacturing, healthcare and technology-led businesses in these sectors.

Founded in 2006 and backed by Motilal Oswal Financial Services and an investment team that has home grown over the last 20 years, Motilal Oswal Alternates is well positioned to execute this strategy with depth and sector expertise.

“Despite an environment marked by economic uncertainty and geopolitical volatility, the successful outcome of this fundraise reflects the deep trust placed in us by leading global asset managers and domestic investors. This confidence has been built through sustained engagement, disciplined investment processes, consistent outcomes across prior fund vintages and steady capital distributions,” said Rohit Mantri, MD & Co-head, Motilal Oswal Alternates (PE).

Vijay Dhanuka, MD & Co-head, Motilal Oswal Alternates (PE) added, “We have been privileged to partner with an exceptional group of promoters and companies that are shaping the future of their respective industries, and we are proud to have enabled value creation of over $40 billion across these businesses.”

“With the continued support of our LPs, including sponsor Motilal Oswal Financial Services Limited and a philosophy centred on long-term, partnership-led growth, we remain focused on deploying this capital into high-quality, differentiated businesses with strong fundamentals and sustainable growth playbook,” he added.