The fund will have agreenshoe option of ₹1,500 crore.
| Photo Credit:
Andrii Yalanskyi
Motilal Oswal Alternates has made its entry into private credit with a ₹3,000 crore fund, that will be invested over the next 3-4 years across growth capital, dislocated credits and performing credit situations.
The fund will also have a greenshoe option of ₹1,500 crore.
“ There are a lot of corporates in India, which are looking for growth capital. They would not want to dilute equity at every stage of their growth and probably at time, they will look for non-valuative capital, which is what private credit can do,” said Rakshat Kapoor, Head – Private Credit, Motilal Oswal Alternates.
The fund expects to generate returns through a combination of regular fixed contracted yields and returns linked to equity performance. It is proposed to be a combination of regular private and hybrid credit fund and will have differentiation in the existing credit funds landscape, he said.
“It is a hybrid credit fund strategy where we are able to evaluate companies from an equity lens. It is focused more on growth and less on stress,” said Kapoor. He estimated the Indian private credit market segment size at $18-20 billion.
The fund would also look at writing larger cheque sizes with big corporates.
A start has already been made by investing in logistics solutions provider Leap India, in which private equity firm KKR is a majority shareholder.
Private credit has taken off in a big way in India as more companies are taking recourse to the segment to raise funds. Recently, Shapoorji Pallonji Group raised $3.14 billion in a refinancing deal. Infrastructure and real estate have raised significant chunks of capital through private credit.
Published on November 27, 2025
