Motilal Oswal Private Equity (MOPE) is looking to raise a Rs 4,000 crore private equity fund from domestic and global investors, a top executive from the fund manager said on Tuesday.

“We intend to invest in mid-market companies in financial services, consumer and pharma sectors,” said Vishal Tulsyan, managing director & CEO, Motilal Oswal Private Equity. About 18 to 20 per cent of the fund will be contributed by Motial Oswal.

The fund manager is looking to raise 50 per cent of the fund domestically and the remainder from abroad, Tulsyan said.

“We plan to do fist close by end of the calendar year and complete fundraising in 6 to 9 months,” he said.
MOPE is looking at an internal rate of return of 30 per cent, he said. MOPE’s first fund, a 2007 vintage, Rs 550 crore ($ 115 million) fund made 13 investments. Overall, Fund 1 gave 6x+ returns and clocked an IRR of nearly 27 per cent at the gross level in rupee terms.

The PE firm’s second fund, raised in 2013, was a Rs 1,000 crore ($ 155 million) fund and made 11 investments, of which one exit is already completed while multiple others are underway.
MOPE raised its third &latest Rs 2,300 crore ($320 million) fund in 2018 – this fund is already 90% committed across 9 investments.