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Motilal Oswal – India Business Excellence Fund V

Motilal Oswal – India Business Excellence Fund V

About Company

Backed by the Motilal Oswal Group, one of India’s most trusted equity investment houses, Motilal Oswal Alternates benefits from deep research expertise, a 38-year track record, and a strong commitment to long-term investing. With ₹2,77,612 crore in equity AUM and ₹39,120 crore in market cap, the Group generates 50% of its profits from investment businesses. It invests 10–15% in each fund and ~20% of its net worth—ensuring strong alignment with investors.

Category: AIF, AIF Category II

Fund Snapshot

Years of Operation 19 Years
Number of Growth Capital Funds 4
Total Investments 50
Total Exits 20
Assets Under Management (AUM, incl. co-investment) ~INR 10,500 Cr
Liquidity/Exits Generated ~INR 7,500 Cr
Realized MOIC (Multiple on Invested Capital) 5.3x
Realized IRR (Internal Rate of Return) 26.3%

Dominant Presence of Motilal Oswal Group

  • Pan-India Presence
    2,500+ business locations and a 400+ LFA network enable wide deal acces – ~60% of deals sourced this way; 29 of 47 investments were exclusive.
  • Experience
    Backed by 38+ years of equity investment expertise and the Group’s own first-generation success—resonating strongly with entrepreneurs.
  • Reputed Brand
    An aspirational partner for promoters; companies backed by MO are highly regarded by investors.
  • Research-Led
    Supported by one of India’s top research houses, with over 30,000 reports published.
  • Edge in IPO Exits
    Seamless collaboration between IB, IE, and Retail teams delivers optimized public market exit strategies.

Backed by a reputed equity house in India, we offer a distinct advantage in sourcing, investing, and exiting—across the full investment lifecycle.

 

 

 Our Investment Approach

Provide growth capital to mid-market companies
-We follow the Quality-Growth-Longevity-Price (QGLP) framework, a time-tested approach that guides every investment decision:

  • Quality of business and leadership
  • Sustainable growth in revenue, market share, profitability, and cash flows
  • Longevity of business fundamentals over a 15–20 year horizon
  • Fair price, ensuring valuation aligns with growth potential and safety margin

We back market leaders—especially those founded by first-generation entrepreneurs—who bring ambition, resilience, and vision to build enduring businesses.

Sector Focus

  • Financial Services
  • Consumer
  • Life Sciences
  • Niche Manufacturing

Proven Track Record in High-Quality Investing

Motilal Oswal Alternates has consistently delivered strong outcomes across market cycles. Each fund showcases disciplined deployment, value creation, and timely exits.

Fund Fund I   Fund II   Fund III   Fund IV
Fund Size ₹550 Cr ₹1,000 Cr ₹2,300 Cr ₹4,500 Cr
Vintage 2007 2013 2018   2022
Gross IRR 26.7% 17.9%   27.5% 27.7%
Gross MOIC 6.0x 4.0x 3.7x 1.5x
Net MOIC 4.5x 3.3x   2.8x   1.3x
Distributed Capital 4.4x 2.4x*   0.3x  
DPI + Liquid Shares 4.4x 2.4x*   0.7x¹   0.1x¹
Investments 13 11   11   13^
Exits Fully Exited    6 Complete*   1 Partial    

 

* Includes expected exit in IKF Finance by May 2025
^ Includes IKF Finance investment, completion expected May 2025
1 Fund III: 4/11 listed; Fund IV: 1/13 listed
Net MOIC, DPI, and DPI + Liquid Shares are post-expense and post-carry, for domestic funds (IBEF & IBEF II in Fund I & II).Performance as of March 31, 2025, per Grant Thornton valuation. Fund I & II include Mauritius-advised funds in track record

Investment Philosophy 

Anchors of our Strategy

  1. First Institutional Investor
    28 out of 50 investments
    Maximum Upside Potential
  2. First-Generation Entrepreneur
    39 out of 50 investments
    Desire for Success
  3. Market Leadership
    34 out of 50 investments
    Brand & Scale Benefits
  4. Profitability Track Record
    44 out of 50 investments
    Superior Business Model
  5. Proprietary Deal Sourcing
    30 out of 50 investments
    Reasonable Entry Valuation
  6. Board Seat(s)
    44 out of 50 investments
    Better Governance & Control

Each of these six pillars reflects Motilal Oswal Alternates’ focused and disciplined approach to identifying, nurturing, and scaling high-potential businesses across India.

 

Summary

  • Target Fund Size: ~INR 8,000 Cr (including INR 1,500 Cr green shoe option)
  • Investment Manager: MO Alternate Investment Advisors Private Limited
  • Strategy: Growth capital to mid-market Indian companies across:
    1. Consumer
    2. Financial Services
    3. Life Sciences
    4. Niche Manufacturing
  • Target Investments: 12–16 companies
  • Hurdle Rate:
  • 10% p.a. pre-tax (INR)
  • 8% p.a. pre-tax (US$)
  • Minimum Commitment:
    • INR 5 Cr (domestic)
    • US$ 1 million (offshore)
  • Sponsor & Team Commitment: 10%+ of the target fund
  • Tenure: 11 years from initial closing
  • Commitment Period: 5 years from final close (extendable by 12 months)
  • Management Fees:
    • 2% (plus taxes) on committed amount during commitment period
    • 2% (plus taxes) on invested amount thereafter
  • Carried Interest: 20% with catch-up
  • Legal Structure: AIF Category II
  • Auditor: S R Batliboi (affiliate of Ernst & Young)
  • Legal Advisor: Khaitan & Co.
  • One-time Setup Cost: 2% (plus GST) of capital commitment

 

 

Fund Overview

Motilal Oswal Alternates (MO Alts) has distinguished itself within the Indian private equity sector through its strategic approach, characterized by entrepreneurial leadership and extensive market involvement. The firm’s key attributes include: First, the enterprise is founded and directed by first-generation entrepreneurs, providing a unique perspective on Indian business objectives. Second, the organization leverages the MO Group’s brand prestige and the founders’ established equity investment standing to secure early access to enterprises with significant growth potential. Third, a substantial alignment of interests is ensured through MO Alts’ commitment of 10-15% of the fund’s capital. Fourth, an active engagement model is employed, involving close collaboration with portfolio companies across various functional domains to facilitate accelerated growth and value augmentation. Fifth, MO Alts is recognized for its distinct expertise in public market exits, positioning it as a preferred collaborator for companies and management teams. Lastly, the firm possesses a record of nearly two decades of successful capital acquisition, high-caliber investments, and minimal loss, consistently generating favorable returns for its stakeholders.

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Fund Manager

Vishal Tulsyan

Vishal Tulsyan, Co-Founder of MO Alternates, brings over 26 years of experience working closely with mid-market companies. He is widely known for nurturing ambitious entrepreneurs and building enduring businesses. With deep knowledge in fund management, structured credit, and corporate finance, Vishal offers strategic insight and a strong network to support founders through every stage of growth.

Raamdeo Agrawal

Chairman and One of India’s Most Respected Investing Minds Equity investing is complex. A checklist is an excellent tool to bring discipline to the process. The 25 questions here and the 25 related frameworks are a good starting point for an investor to create their own checklist over time. Time is a friend of good companies and enemy of bad companies. In 25 years, successful companies grow to unimaginable levels in sales, profits and market cap. Stock returns are slaves of earnings power and growth. In the very long run, valuations matter less. Over 50% of current market cap is made up of listings post 1995.

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Disclaimer: Investing in AIF, PMS, Gift City or Mutual Fund is subject to market risk. Please read the related documents carefully. Past performance does not guarantee future results and there is no assurance that the managed accounts will necessarily achieve their objectives. Actual portfolios may differ as a result of account size, client-imposed investment restrictions, the timing of client investments and market, economic, and individual company factors. We at ALTPORT do not guarantee any returns in the hands of investors, nor do we take any sort of accountability for the performance of the scheme.

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