Motilal Oswal - India Business Excellence Fund V

Motilal Oswal – India Business Excellence Fund V

Distributed through AltPort Experts. Comprehensive fund documentation can be accessed through our research team.

Category AIF Category II

Company

Fund Managers Vishal Tulsyan,

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

First Institutional Investor 28 out of 50 investments → Maximum Upside Potential
First-Generation Entrepreneur 39 out of 50 investments → Desire for Success
Market Leadership 34 out of 50 investments → Brand & Scale Benefits
Profitability Track Record 44 out of 50 investments → Superior Business Model
Proprietary Deal Sourcing 30 out of 50 investments → Reasonable Entry Valuation
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.

Motilal Oswal – India Business Excellence Fund V

Proven Track Record in High-Quality Investing

Vishal Tulsyan

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