Motilal Oswal Alternates has entered the rapidly expanding private credit space, initiating the regulatory process to launch its maiden private credit fund. The proposed fund aims to raise ₹3,000 crore, which includes a green-shoe option of ₹1,500 crore, the company said.

India’s private credit market already considered a mature asset class is witnessing strong momentum. Mid-market companies with solid operating histories are increasingly seeking flexible and non-dilutive financing options to support expansion, according to Raksht Kapoor, Head of Private Credit at Motilal Oswal Alternates.

The fund has filed its draft prospectus with SEBI and is now awaiting regulatory clearance. Once launched, it will mobilise capital from both domestic and offshore investors, including ultra-high-net-worth individuals (UHNIs), family offices and institutional investors. The structure will also enable participation from global limited partners.

Motilal Oswal’s private credit vehicle will operate through two core strategies growth capital and dislocated credit. The growth capital component will focus on companies demonstrating strong performance but in need of non-dilutive capital to scale their operations. The dislocated credit strategy, meanwhile, will look to leverage opportunities where market inefficiencies create attractive risk-adjusted returns.

Kapoor noted that India’s evolving credit landscape, combined with rising demand from mid-sized businesses, makes this an opportune moment to deepen private debt participation. “Companies with proven track records are actively looking for financing structures suited to their long-term needs,” he said.

The launch marks Motilal Oswal Alternates’ latest move to widen its alternative investment offerings, signalling growing confidence in India’s private credit ecosystem.