Motilal Oswal Alternates Launches Rs 1,700 Crore Private Credit Fund

Motilal Oswal Alternates announced the first closure of its India Credit Excellence Fund - I at Rs 1,700 crore, with Rs 200 crore from Motilal Oswal Group. The fund targets mid-market businesses with non-dilutive capital, aiming for a total corpus of Rs 3,000 crore.

Motilal Oswal Alternates has achieved the first closure of its private credit initiative, India Credit Excellence Fund - I, amassing Rs 1,700 crore, which includes Rs 200 crore commitments from the Motilal Oswal Group. This strategic move aims to cater to mid-market enterprises that are profitable yet struggle to secure suitable financing through traditional channels.

The fund's primary focus is on offering secured lending and customized financial solutions to viable mid-market ventures seeking non-dilutive capital. Experts predict substantial growth in India's private credit market, estimating it could surpass Rs 10 lakh crore in the coming years, as businesses increasingly demand flexible financing methods.

Launched in January 2026 with a target corpus of Rs 3,000 crore, Motilal Oswal Alternates has a remarkable legacy, having raised over Rs 23,000 crore in two decades across 11 funds, and currently managing Rs 28,000 crore in assets. The platform also celebrated the final close of its largest private equity fund at Rs 8,500 crore.

(With inputs from agencies.)