Motilal Oswal Alternates
Overview
Motilal Oswal Alternates is the alternative investments arm of Motilal Oswal Financial Services, focusing on private equity and real estate investments. Established under the umbrella of Motilal Oswal Financial Services, a prominent Indian financial services firm, it operates primarily in sectors such as consumer, financial services, life sciences, and niche manufacturing. The firm has an assets under management (AUM) worth approximately USD 2 billion, encompassing a diverse portfolio of investments across private equity and real estate.
Recent Developments
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November 2024: Motilal Oswal Alternates co-led a USD 153 million funding round for HealthKart, alongside ChrysCapital. This significant investment round marked a pivotal moment for HealthKart as it crossed INR 1,000 crore in revenue for FY24 and achieved EBITDA profitability. HealthKart also announced its first employee stock ownership plan (ESOP) buyback worth INR 55 crore, benefiting both current and former employees.
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August 2024: MO Alternates invested INR 330 crore for a minority stake in Lal Sweets, Bengaluru. The investment aims to bolster Lal Sweets’ growth in the packaged sweets market, which is witnessing rapid expansion.
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February 2024: The first close of the sixth real estate fund (India Realty Excellence Fund VI) was achieved at INR 1,250 crore. The fund is intended for early-stage investments in residential projects across major Indian cities.
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2024: Motilal Oswal Alternates has continued its strategic focus on investments in mid-market companies and consumer brands, investing over INR 1,800 crore in various sectors including dry fruits, fashion jewelry, and packaged sweets.
Company Information
| Attribute | Information |
|---|---|
| Founding Date | 2006 |
| Headquarters | Mumbai, India |
| Founders | Subhi Oswal (part of Motilal Oswal Financial) |
| Revenue | Not publicly disclosed |
| Profits | Not publicly disclosed |
| Key Investors | Internal capital from Motilal Oswal Financial |
| Industry | Private Equity, Real Estate |
| Number of Employees | Not publicly disclosed |
Early History
Motilal Oswal Alternates was founded as a subsidiary of Motilal Oswal Financial Services to capitalize on the burgeoning opportunities in India's private equity and real estate sectors. The firm started by focusing on growth capital for mid-sized companies needing financial injections to scale operations. Within a few years, it successfully established itself as a compelling investment platform, attracting interest for its disciplined approach focused on consumer sector growth. The early days were marked by a focus on niche sectors, where the group could use its industry expertise effectively.
Company Profile and Achievements
Motilal Oswal Alternates operates two primary investment vehicles: private equity and real estate funds. The private equity arm primarily focuses on mid-market companies spanning consumer products, financial services, and innovative manufacturing ventures. Over the past 18 years, the firm has made over 44 investments, enhancing its reputation as a successful investor with an MOIC (multiple on invested capital) of 5.0x and a gross IRR (internal rate of return) of 26.3%.
Some achievements include:
- Successfully exiting 17 investments while partially exiting 2, showcasing a robust exit strategy and value realization.
- Launch of multiple real estate funds, with a consistent record of high IRR from investments in residential developments across major Indian metros.
- Making strategic investments in consumer brands such as HealthKart, underscoring its focus on the consumer health and nutrition sectors.
Current Operations and Market Position
Motilal Oswal Alternates continues to solidify its position in India's alternative investment landscape. Its strategic investments in burgeoning sectors have allowed it to maintain a prominent market presence. The firm is currently raising additional funds for its latest real estate initiatives, aiming to optimize land acquisition and develop major residential projects in top-tier cities across India. This approach positions it to leverage the growing demand in India's real estate market and align with broader industry trends of urban development and housing expansion.
Conclusion
Motilal Oswal Alternates serves as a significant player within the alternative investments sector, with a strategic focus on mid-market growth opportunities and residential real estate projects. With a solid track record of high returns and strategic acquisitions, the firm is likely to maintain its trajectory of success. Looking ahead, it is poised to capitalize on emerging opportunities in India's evolving financial and real estate markets, backed by a deep pool of investment expertise and accumulated industry knowledge.