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India Credit Fund Hits Rs 1,700 Crore Milestone
26 Feb
Summary
- India Credit Excellence Fund secured Rs 1,700 crore in its first close.
- The fund aims to support scaling mid-market enterprises with bespoke solutions.
- Private credit market in India is projected for significant future growth.
Motilal Oswal Alternates (MO Alts) has successfully reached the first close of its maiden private credit fund, the India Credit Excellence Fund, securing Rs 1,700 crore. This milestone includes a Rs 200 crore commitment from the sponsor and its affiliates. The fund, launched in January 2026, is targeting a total corpus of Rs 3,000 crore, with its final close anticipated in the near future.
The India Credit Excellence Fund is strategically designed to offer secured lending and customized capital solutions. It will primarily support profitable and growing mid-market companies that face challenges accessing appropriate financing from traditional banking or capital markets. MO Alts plans to leverage its equity underwriting expertise within this asset class, focusing on senior secured lending and opportunistic equity upside.
This development aligns with the significant growth projected for India's private credit market, estimated to reach over Rs 10 lakh crore in the coming years. The fund's strategy is a natural extension of MO Alts' existing capabilities, aiming to bring rigorous underwriting to structured lending.
