Motilal Oswal PE raises a record Rs 23 billion for its third fund

Motilal Oswal Private Equity
Motilal Oswal Private Equity (MOPE) has raised Rs 23 billion for its third fund, the India Business Excellence Fund-III. Investors in the fund includedomestic and global institutions, large family offices and HNIs, besides Motilal Oswal and the investment team.

Vishal Tulsyan, Managing Director & CEO of MOPE, said that the company has raised the third private equity fund (IBEF III) in a short span of time on the back of strong demand from existing and new investors. 

India is witnessing a fast-emerging class of domestic investors that provide the breadth and depth to the Indian private equity industry as a whole. 

MOPE has a strong track-record of exits because of which entrepreneurs in non-metro cities are becoming more open to external private capital. IBEF III will continue to identify and partner with small to mid-size companies in their growth journey to create value for all stakeholders.

BEF III will endeavour to invest in established mid-market businesses with strong growth characteristics, clear and mature business strategy and a leading market position. The fund expects to invest in about 12 to 14 companies, representing adequate diversification as well as a wide exposure to multiple high growth industry sub-segments.

IBEF III has already made three investments in the financial services, consumer and manufacturing segments.

The first investment is with MAS Financial Services, an-NBFC based out of Gujarat with a retail portfolio of 2-wheeler, CV and SME loans (48% of AuM) and on-lending portfolio of loans to other NBFCs and MFIs (52% of AuM). IBEF III invested Rs 1.43 billion in September 2017.

The second investment is with N. Ranga Rao & Sons Private Limited (Cycle brand), a leading Agarbathi Company in India based out of Mysuru.

The third investment is with Happy Forging Limited, a leading forging company and one of the largest Crankshaft manufacturers in India based out of Ludhiana. The company has a forging capacity of 60,000 MT and machining capacity of 20,500 MT which helps serve customers across multiple end-user industries including commercial vehicles, capital equipment, tractors, railways and exports. IBEF III committed Rs 2 billion in September 2018.

IBEF, launched in 2007 is a Rs 5.50 billion fund and is fully invested in 13 portfolio companies across sectors. Out of the thirteen investments it has already made ten exits. 

IBEF II, launched in 2012 is a Rs 10 billion fund and is fully invested in 11 portfolio companies across sectors like financial services, life sciences, niche manufacturing and consumption based sectors. 

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