Motilal Oswal Alternates has initiated regulatory processes to launch its private credit business.
The company’s maiden private credit fund aims to raise Rs 3,000 crore (around $336 million), including a greenshoe option of Rs 1,500 crore, it said in a statement.
The proposed vehicle will focus on secured lending, targeting mid- to large-sized corporates to generate risk-adjusted returns through a mix of straight debt yields and equity-linked upsides.
“The proposed fund looks to invest in growth capital and special situation-oriented transactions. Leveraging on Motilal Oswal Group’s deep equity investing framework, we envisage more transactions of a hybrid nature, where we can look to have participation in equity upsides,” said Rakshat Kapoor, head, private credit, Motilal Oswal Alternates.
Motilal Oswal Alternates currently manages around $3.2 billion across private equity and real estate strategies. Since its inception in 2006, its private equity platform has backed several category-leading mid-market companies, while its real estate arm has completed 190 investments with 125 exits.
With the launch of its private credit strategy and continued expansion of its private equity business, the firm expects to surpass $3.5 billion in assets under management.
Several of Motilal Oswal’s peers such as Bain Capital and True North also operate private credit funds.
