Motilal Oswal Alts marks first close of maiden private credit fund

Motilal Oswal Alternates (MO Alts), the alternative investments arm of Motilal Oswal Financial Services, has achieved the first close of its inaugural private credit vehicle, India Credit Excellence Fund-I, at Rs 1,700 crore (approximately $186 million). The milestone underscores the firm’s push to broaden its alternatives platform with a dedicated private credit strategy.

The first close includes a Rs 200 crore commitment from the sponsor and its affiliates. Launched in January, the fund is targeting a total corpus of Rs 3,000 crore, inclusive of a green-shoe option. MO Alts indicated that it aims to reach the final close in the near term.

The strategy will focus on secured lending and bespoke, customized credit solutions for fundamentally sound, profitable, and growing mid-market companies. According to Rakshat Kapoor, head and chief investment officer for private credit at MO Alts, the move into private credit is a logical extension of the firm’s existing capabilities. The platform plans to deploy primarily through senior secured lending across growth capital and dislocated credit situations, while retaining the flexibility to selectively participate in equity upside where appropriate.

MO Alts currently manages around $3.2 billion in assets across private equity and real estate strategies. Since its inception in 2006, the private equity platform has backed numerous category-leading mid-market businesses, and the real estate strategy has completed 190 investments with 125 exits. With the addition of private credit and continued expansion in private equity, the firm expects to surpass $3.5 billion in assets under management.

Key highlights

• First close: Rs 1,700 crore (approx. $186 million)
• Sponsor and affiliate commitment: Rs 200 crore
• Target fund size: Rs 3,000 crore, including a green-shoe option
• Focus: Senior secured lending and bespoke credit solutions to mid-market, profitable, and growing businesses
• Flexibility: Ability to opportunistically participate in equity upside
• Current AUM: Approximately $3.2 billion across private equity and real estate
• Projected AUM: Expected to exceed $3.5 billion with private credit launch

With this first close, MO Alts positions itself to capitalize on the growing demand for structured private credit solutions in India’s mid-market segment, aiming to deliver risk-adjusted returns through secure structures and selective upside participation.