Home / Business and Economy / Motilal Oswal Closes Largest PE Fund at ₹8,500 Cr
Motilal Oswal Closes Largest PE Fund at ₹8,500 Cr
16 Feb
Summary
- Fundraiser exceeded target, closing at ₹8,500 crore.
- Strong participation from global and domestic investors noted.
- Fund V targets 14 companies with $40-100 million investments.
Motilal Oswal Alternate has successfully closed its fifth private fund, India Business Excellence Fund V (IBEF V), at its hard cap of ₹8,500 crore in February 2026. This final close marks the largest private equity fund in the firm's history, surpassing its initial target of ₹6,500 crore within ten months of its launch in April 2025.
The fund garnered strong participation from both international and domestic investors, with notable contributions from entities like IFC and Adams Street Partners. This signifies a significant influx of foreign capital, a first for MOA in such a substantial amount, as previous funds were primarily backed by domestic investors.
IBEF V is poised to invest between $40-100 million in up to 14 companies over its 7-8 year cycle, aiming for an internal rate of return exceeding 20 percent. Investments will largely be minority stakes, with approximately 20% potentially allocated to majority holdings. The fund focuses on sectors including consumer, healthcare, financial services, and niche manufacturing, prioritizing profit-making enterprises.
