Motilal Oswal Private Equity launches ₹4,000 crore fund

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Mumbai: Motilal Oswal Personal Fairness (MOPE), the personal fairness arm of Motilal Oswal Group, is launching its subsequent development fairness fund, the corporate stated right now.

This would be the fourth fund for the homegrown personal fairness agency which has been investing on this market since 2007.

The funding technique for the brand new Fund, India Enterprise Excellence Fund IV (or IBEF IV), will probably be in keeping with the earlier funds as MOPE continues its deal with offering essential development capital to mid-market Indian corporations demonstrating robust long-term sustainable development potential.

As prior to now, the desire could be to put money into first-generation entrepreneurs constructing companies with important product and/or geographic management, the corporate stated.

“The PE/VC ecosystem in India has actually come of age over the past decade and development fairness capital will proceed to play a pivotal function as India strikes from a $3 trillion economic system to over $10 trillion within the subsequent decade,” stated Vishal Tulsyan, managing director and CEO of MOPE, including that regardless of the Covid-19 scenario and restrictions throughout the nation, MOPE has actively made new investments in addition to delivered exits to its buyers.

By way of focus sectors, IBEF IV plans to construct a diversified portfolio of 10–12 investments throughout MOPE’s most well-liked sectors of client, monetary companies, life sciences, and area of interest manufacturing. The fund may consider and selectively put money into rising new-age enterprise fashions with digital/on-line distribution channels, inside its most well-liked sectors.

The Fund has been arrange as an alternate funding fund (AIF Class II) registered with inventory market regulator Sebi. MOPE expects to realize its first shut earlier than December 2021 and conclude fundraising inside 9-12 months.

MOPE’s first fund, a 2007 classic, 550 crore fund made 13 investments and lately absolutely exited the fund with an IPO of GR Infraprojects (a number one street EPC firm) which was subscribed 100+ instances, the very best oversubscription within the sector for over a decade. Different exits from Fund 1 embody AU Financiers (now, AU Small Finance Financial institution) and Dixon Applied sciences, each of which delivered greater than 10 instances returns. “General, Fund 1 made 6x+ returns and clocked an IRR of ~27% on the gross degree in INR phrases.”

The PE agency’s second fund, raised in 2013, was a 1,000 crore fund and made 11 investments, of which one exit is already accomplished whereas a number of others are underway.

MOPE raised its third and newest 2,300 crore fund in 2018. This fund is already 90% dedicated throughout 9 investments. Molbio Diagnostics, which the fund invested in initially of 2020, is the nation’s largest molecular diagnostics platform and has been on the forefront of Covid testing in India, because the onset of the pandemic. MOPE additionally invested in Bengaluru-based KreditBee, one of many largest gamers within the private mortgage section, marking its debut funding within the fintech house.

General since its inception in 2006, the personal fairness agency has made 33 investments and has generated 6 instances returns on its 14 exits until date.

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