Motilal Oswal Alternates Forays into Private Credit with ₹3,000 Crore Fund
Motilal Oswal Alternates, a major player in the Indian alternative investment space, has announced its foray into the rapidly growing private credit market. The firm has initiated regulatory processes to launch its dedicated private credit arm, aiming to capitalize on the increasing demand for flexible, non-dilutive capital among Indian mid-market corporates.
The Maiden Fund and Strategy
Motilal Oswal Alternates has filed its prospectus with SEBI and is currently awaiting regulatory clearance for its maiden fund:
Target Size: The fund proposes to raise ₹3,000 crore, which includes a green shoe option of ₹1,500 crore.
Target Investors: Capital will be raised from both domestic and offshore investors, including Ultra High Net Worth Individuals (UHNIs), family offices, and institutional investors. Structures are being put in place to facilitate global Limited Partner (LP) participation.
Strategy Focus: The private credit vehicle will focus on two core strategies:
Growth Capital: Targeting mid-market companies with strong operating performance that require non-dilutive capital to scale their business. This meets the needs of corporates who prefer debt over equity to fund expansion without diluting ownership.
Dislocated Credits: This strategy typically involves investing in opportunities where market pricing or temporary challenges have created mispriced or undervalued credit assets.
The Opportunity in Indian Private Credit 🇮🇳
According to Rakshat Kapoor, Head of Private Credit at Motilal Oswal Alternates, the Indian private credit market is a “relatively matured asset class and growing rapidly.”
Mid-Market Demand: The key driver is the appetite among mid-market corporates with strong operating track records who seek flexible debt solutions that are not readily available from traditional banks.
Non-Dilutive Capital: Private credit provides a crucial funding avenue that allows businesses to access significant capital while maintaining control, a major advantage over issuing fresh equity.
This launch positions Motilal Oswal Alternates to tap into the increasing demand for structured credit solutions as India’s economy continues its growth trajectory.
Explore Alternative Funding
For deeper understanding of the regulatory framework for the
Explore perspectives from Ranjit Jha (CEO)—a trusted voice in wealth strategy and financial markets.
To explore how Rurash Financials supports investors with fixed-income strategies, market research, and wealth solutions, visit the official website.