Motilal Oswal Alternates raises Rs 1,700-crore fund

Motilal Oswal Alternates, the alternative investment division of Motilal Oswal Financial Services, has successfully secured ₹1,700 crore through the initial closing of its inaugural private credit fund, named India Credit Excellence Fund-I. Launched in January, this fund aims for a total target corpus of ₹3,000 crore, which includes a green shoe option. The primary focus of the fund is on secured lending and providing tailored solutions to mid-market enterprises that are profitable and growing but face challenges in accessing capital through traditional banking or capital markets. Rakshat Kapoor, the head and chief investment officer for private credit at Motilal Oswal Alternates, highlighted that this move into private credit is a natural progression for the firm, leveraging its existing financial capabilities. The strategy involves senior secured lending aimed at growth capital and addressing dislocated credit situations, with potential opportunities for equity participation. Kapoor also noted the significant potential in the private credit market, which is projected to exceed ₹10 lakh crore in the coming years, indicating robust demand for such financial solutions in India’s evolving economic landscape.