Motilal Oswal Makes a Mod Move into Private Credit with Modulus Maestro

Motilal Oswal Financial Services is venturing into the burgeoning private credit space, hiring Rakshat Kapoor, previously Chief Investment Officer at Modulus Alternatives, to spearhead the effort. Kapoor's joining is part of Motilal Oswal's plan to raise $250 million for its first private credit fund over the next four to six months to invest in growth capital of mid-sized and large Indian companies.

 

Key Highlights:

 

•⁠  ⁠Rakshat Kapoor, a more than six-year Modulus veteran who also worked at Nomura and Deutsche Bank, will head Motilal Oswal's new private credit business within its Alternates division, which manages $1.8 billion of assets.

 

•⁠  ⁠The fund will lend across credit grades, with a focus on growth-seeking companies.

 

•⁠  ⁠India's private credit market is thriving with a total volume of $9.2 billion per year—a 7% year-on-year increase.

 

•⁠  ⁠International behemoths such as Goldman Sachs and KKR along with local players such as Kotak are increasing the tempo in this space.

 

Outlook

 

 Motilal Oswal's foray, led by a industry stalwart, is at a time when there is growing appetite for private credit among institutional investors and sovereign wealth funds. As competition intensifies, the foray sets Motilal Oswal up to garner a sizable share in India's fast-growing alternative lending business.

 

Source: The Hindu Business Line, CNBC TV18