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Motilal Oswal Private Equity (MOPE), the private equity arm of Motilal Oswal Group, on Tuesday announced the launch of ₹4,000 crore new private equity fund that will focus on providing growth capital to mid-market companies.
This will be the fourth fund from MOPE, which has been investing in the Indian private markets since 2007.
The investment strategy for the new fund, India Business Excellence Fund IV (IBEF IV), will be in line with the previous funds as MOPE continues its focus on providing crucial growth capital to mid-market Indian companies demonstrating strong long term sustainable growth potential.
MOPE expects to achieve first close before December 2021 and conclude fundraising within 9-12 months, said Vishal Tulsyan, Managing Director & CEO, MOPE.
“The aim will be to get 50 per cent of the fund raise from domestic investors, while the other 50 per cent is expected to come from overseas investors,” he added.
Like the MOPE’s previous funds, the latest fund will have a diversified portfolio of 10-12 companies across preferred sectors of consumer, financial services, life sciences and niche manufacturing. The Fund may also evaluate and selectively invest in emerging new age business models with digital / online distribution channels, within its preferred sectors.
The Fund has been set up as an alternative investment fund (AIF Category II) registered with stock market regulator SEBI.
Tulsyan highlighted that the PE/VC ecosystem in India has really come of age over the last decade and growth equity capital will continue to play a pivotal role as India moves from a $3 trillion economy to over $10 trillion in the next decade.
“As with our previous funds, even with IBEF IV, we will continue to pursue our time-tested investment framework of QGLP (Quality, Growth, Longevity and Price) to back market-leading, mid-market companies in our preferred sectors.”
Motilal Oswal Private Equity’s earlier three funds had returned about 27-28 per cent each, according to Tulsyan.
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