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Motilal Oswal Alternates (MO Alts), the alternative investment arm of Motilal Oswal Financial Services, today announced the first close of its maiden private credit fund, India Credit Excellence Fund - I (“the Fund”), at INR 1,700 crore. This includes an INR 200 crore commitment from the Sponsor and its affiliates. The Fund, launched in January 2026, targets a total corpus of INR 3,000 crore including green shoe. The final close is envisaged in the near term and the Fund has a strong pipeline of investment opportunities.

This milestone marks a significant chapter in MO Alts’ 20-year journey as India’s premier alternatives platform, and a meaningful step in its evolution towards a multi-asset alternatives firm. The platform had also recently announced the final close of its fifth and largest ever private equity fund at INR 8,500 crore, underscoring the momentum and scale of the franchise.

Over the past two decades, MO Alts has built a distinctive track record across private equity and real estate, having raised over INR 23,000 crore across 11 funds and currently managing ~INR 28,000 crore in assets. The private equity platform has delivered consistent top-tier returns across five funds, backing high-quality growth businesses across sectors and cycles. The real estate platform, which has operated as a structured credit business since inception, has deployed capital across six funds with a strong exit track record, having achieved over 130 full exits across market cycles. The Fund marks the next chapter, bringing combined institutional depth and cross-asset expertise to bear on India’s fast-growing private credit opportunity.

The private credit fund is headed by Mr. Rakshat Kapoor, a veteran in the structured financing industry with over 25 years of experience.

A strong second line of leadership is also in place, with experiences spanning performing credit, special situations, growth capital and hybrid investments across marquee institutions.

The investment committee of the Fund draws on MO Alts’ cross-asset expertise, bringing together senior professionals from the private equity and real estate platforms. This breadth of experience, spanning growth investing, sector research, structured lending, and covenant management across market cycles forms a key pillar of the Fund’s differentiated approach to credit underwriting and portfolio construction.

Rakshat Kapoor, Head & CIO, Private Credit, MO Alts said, "We have spent considerable time designing a credit platform that is meaningfully differentiated, one that brings the rigor of MO Alts’ equity underwriting DNA to the world of structured lending. The platform’s entry into this asset class is a natural extension of the its existing capabilities. Our strategy spans senior secured lending across growth capital and dislocated credit situations, with the ability to opportunistically participate in equity upside.

India's private credit market is at an inflection point. We estimate the addressable market to grow to over INR 10 lac crore over the next few years. This shall be driven by mid-market corporates actively seeking flexible, non-dilutive capital as traditional financing channels face structural constraints. We intend to be their partner of choice. The strong first close of INR 1,700 crore achieved within a few weeks of launch is a testament to investor confidence in our investment thesis and in our team’s ability to execute."

The Fund will focus on secured lending and bespoke customised solutions targeting mid-market businesses that are profitable, growing, and fundamentally creditworthy, yet unable to access capital at the right tenor and structure from banks or capital markets. Leveraging MO Alts’ deep equity investing framework, and drawing from the real estate underwriting expertise, the Fund is designed to capture equity-linked upsides alongside regular credit yields, a hybrid approach that sets it apart in the market.

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