Motilal Oswal Alternates enters private credit with ₹3,000 cr fund
2 min read
The fund will have agreenshoe option of ₹1,500 crore.
| Photo Credit:
Andrii Yalanskyi
Motilal Oswal Alternates has launched a ₹3,000 crore private credit fund targeting investments in growth capital, performing credit, and dislocated credit opportunities over the next 3-4 years.
The vehicle includes an additional ₹1,500 crore greenshoe option for potential oversubscription.
Rakshat Kapoor, Head of Private Credit at Motilal Oswal Alternates, stated: “Many Indian corporations seek growth capital without equity dilution at every stage. Private credit offers this non-dilutive funding solution.”
The hybrid strategy fund aims to generate returns through fixed-yield instruments combined with equity-linked performance components. Kapoor described the approach as “equity-evaluated credit investing” focused on growth opportunities rather than stressed assets, estimating India’s private credit market at $18-20 billion.
The fund plans to engage with large corporates through substantial investment commitments and has already deployed capital in logistics provider Leap India, where KKR holds majority ownership.
India’s private credit sector continues expanding, with recent notable transactions including the Shapoorji Pallonji Group’s $3.14 billion refinancing deal. Infrastructure and real estate sectors remain significant beneficiaries of private credit financing.
Published on November 27, 2025
About Author
