Motilal Oswal Alternates (MO Alts), the alternative investment arm of Motilal Oswal Financial Services, has completed the first close of its maiden private credit fund, India Credit Excellence Fund-I, at Rs 1,700 crore ($186 million).
The first close includes a commitment of Rs 200 crore from the sponsor and its affiliates. The fund, which was launched in January this year, is targeting a total corpus of Rs 3,000 crore, including a green-shoe option, the firm said in a press note.
Motilal Oswal said it is targeting the final close in the near term, though it did not specify any timeline. Broadly, the fund will focus on secured lending and bespoke customized solutions targeting mid-market businesses that are profitable, growing and fundamentally creditworthy.
“The platform’s entry into this asset class is a natural extension of its existing capabilities,” said Rakshat Kapoor, head and chief investment officer, private credit, MO Alts. “Our strategy spans senior secured lending across growth capital and dislocated credit situations, with the ability to opportunistically participate in equity upside,” he added.
In November, VCCircle had reported that Motilal Oswal is planning to foray into the private credit segment, and has initiated regulatory processes for the same.
Motilal Oswal Alternates manages around $3.2 billion in assets under management across private equity and real estate strategies. Since its inception in 2006, the private equity platform has backed several category-leading mid-market businesses, while the real estate platform has completed 190 investments with 125 exits.
With the introduction of its private credit strategy and the continued expansion of its private equity business, Motilal Oswal Alternates expects to surpass $3.5 billion in assets under management.
