Motilal Oswal raises Rs 1,700 crore first close for debut private credit fund

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 at Rs 1,700 crore. This includes an Rs 200 crore commitment from the sponsor and its affiliates. The Fund, launched in January 2026, targets a total corpus of Rs 3,000 crore including green shoe, the fund said in a statement.

The final close is likely in the near term and the Fund has a strong pipeline of investment opportunities.

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.


MO Alts’ Fund will use the equity-linked upsides alongside regular credit yields.

“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,” said Rakshat Kapoor head and CIO, private credit, MO Alts, adding that the platform’s entry into this asset class is a natural extension of its existing capabilities. The strategy spans senior secured lending across growth capital and dislocated credit situations, with the ability to opportunistically participate in equity upside.

He added that India's private credit market is at an inflection point and estimates the addressable market to grow to over Rs 10 lakh crore over the next few years.