Motilal Oswal Alternates Ventures into India's Growing Private Credit Market

Motilal Oswal Alternates is entering the private credit sector with a new fund targeting Rs 3,000 crore, marking its debut in India's growing private credit market. The fund aims to invest in growth capital and special situations, expanding the company's diverse investment strategies.

Motilal Oswal Alternates, the alternative investment platform of the financial services group Motilal Oswal, has announced its foray into the private credit space with a new fund aiming to raise Rs 3,000 crore. This move marks the group's entry into India's burgeoning private credit sector, which is currently experiencing a structural transformation.

The company has initiated the regulatory processes necessary to launch its private credit arm. The maiden fund intends to raise Rs 3,000 crore, including a green shoe option of Rs 1,500 crore, and will focus on investing in growth capital and special situation transactions.

Having raised over Rs 23,000 crore across 11 private equity and real estate strategies, Motilal Oswal Alternates is poised to grow its assets under management to over USD 3.5 billion within the next year with this new addition. The Executive Chairman, Vishal Tulsyan, notes that expanding into private credit is a strategic evolution of their business. Meanwhile, Rakshat Kapoor, Head-Private Credit, highlights the growth opportunities in India's relatively mature private credit market.

(With inputs from agencies.)