Motilal Oswal Alternates Launches Maiden Private Credit Fund Worth ₹30 Billion

Inside the announcement  
According to The Hindu BusinessLine, Motilal Oswal Alternates (MO Alternates), the alternative investment arm of Motilal Oswal Financial Services, is entering the private credit space with a ₹3,000 crore fund (₹30 billion). The fund will be deployed over the next 3–4 years, catering to corporates seeking flexible capital without equity dilution. Rakshat Kapoor, Head of Private Credit at MO Alternates, emphasized that the fund aims to generate returns through a mix of fixed contracted yields and equity-linked performance, positioning it as a hybrid credit solution.  

Notable updates  
• Fund size: ₹30 billion with ₹15 billion green-shoe option  
• Investment horizon: 3–4 years across growth capital, dislocated credits, and performing credit situations  
• Target audience: Corporates seeking non-dilutive capital for expansion and restructuring  
• Return profile: Combination of fixed yields and equity-linked upside  
• Strategic move: Diversifies MO Alternates’ portfolio beyond real estate and private equity  

Major takeaway  
The launch marks Motilal Oswal Alternates’ strategic entry into India’s growing private credit market. By offering flexible financing solutions, the fund addresses corporates’ capital needs while opening new avenues for investors seeking differentiated returns.  

Sources: The Hindu BusinessLine