Motilal Oswal Alternates announces final close of Rs 8,500 crore for 5th private equity fund

Motilal Oswal Alternates announces final close of Rs 8,500 crore for 5th private equity fund.

Motilal Oswal Alternates announced the final close of its fifth private equity fund, India Business Excellence Fund V (IBEF V/Fund V),  at its hard cap in February 2026, 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.

IBEF V attracted 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.

Consistent with prior funds, a meaningful portion of the capital — approximately 10%+ — has been committed by the Sponsor Motilal Oswal Group and the Motilal Oswal Alternates team, reflecting strong alignment with investor interests.

With the final close of IBEF V (INR 8,500 Cr), the successful raise of IREF VI (INR 2,000 Cr) and the launch of private credit, the firm’s total AUM now exceeds USD 3.3 billion, underscoring the scale and institutional depth of its investment platform.

Fund V shall invest approximately USD 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.

The senior team— comprising seven Managing Directors and eleven Directors across private equity, real estate and private credit — brings long-standing collaboration and domain experience to identify and scale businesses led by first-generation entrepreneurs with strong competitive advantages and leadership positions in large industries.

The Private Equity platform is co-headed by Rohit Mantri (MD – Healthcare) and Vijay Dhanuka (MD – Consumer), alongside senior leaders Prakash Bagla (MD – Niche Manufacturing) and Vinit Mehta (MD – Financial Services).

“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 Mr. Rohit Mantri, MD & Co-head, Motilal Oswal Alternates (PE).

Mr. 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 USD 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.”

The private equity fund has made 51 investments and completed 24 successful exits till date, generating approximately USD 1 billion in liquidity and a realised MOIC of ~4x. Recent investments include Lahori Zeera (well-known brand in the cumin flavoured carbonated drink category), Sensacore (innovation driven medical devices company) and Vistaar Finance (scaled secured lending player) amongst others. The fund has already committed ~20% of its capital to three investments under Fund V.

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