Motilal Oswal Alternates Raises ₹8,500 Crore for India Business Excellence Fund V, Surpasses Target in 10 Months

Fund Closes at Hard Cap, Marks Largest Private Equity Raise in Firm’s History​

Mumbai, February 16 Motilal Oswal Alternates announced that it has raised ₹8,500 crore from private equity investors, with the capital set to be deployed as growth funding across companies.

The fund, titled India Business Excellence Fund V (IBEF V/Fund V), has closed at its hard cap in February 2026. The corpus exceeded its initial target of ₹6,500 crore and was completed within 10 months of its launch in mid April 2025.

In a statement, Motilal Oswal Alternates said this marks the largest private equity fund raise in the firm’s history.

Strong Participation from Global and Domestic Investors​

The fund witnessed robust participation from both international and domestic investors. Company executives noted that this is the first time the platform has raised such a significant amount from foreign investors.

Global participants include International Finance Corporation and Adams Street Partners. On the domestic front, leading banks, insurers, and family offices showed strong interest in the fund.

Executives said that while the majority of capital in the first four funds came from domestic investors, the fifth fund saw a notable increase in foreign participation.

Deployment Strategy: Growth Capital with Select Majority Stakes​

The ₹8,500 crore fund will invest between USD 40 million and USD 100 million in up to 14 companies over a 7 to 8 year investment cycle.

Rohit Mantri, Managing Director and Co Head of Motilal Oswal Alternates, said the firm aims to back Indian businesses with the potential for long term relevance. He added that subscriptions came in quickly, prompting the firm to cap the fund size at an optimal level to deliver better returns.

The fund is targeting an internal rate of return exceeding 20 per cent.

Most investments will be minority stakes. Around one fifth of the corpus may be deployed towards majority investments. According to the management, 20 per cent of the fund has already been deployed and this is expected to rise to 35 per cent by the end of March.

Sector Focus: Consumer, Healthcare, Financial Services, Manufacturing​

Consistent with its earlier funds, the new platform will focus on consumer, healthcare, financial services, and niche manufacturing sectors.

Executives said more than 90 per cent of the investments will be in profitable enterprises. Despite healthcare being a key theme, the fund has avoided hospitals. Similarly, while financial services remains a focus area, fintech companies have been excluded from the investment strategy.

With the final close of India Business Excellence Fund V, Motilal Oswal Alternates strengthens its position in India’s private equity landscape, backed by a diversified investor base and a clearly defined sectoral focus.