Motilal Oswal Private Equity India Business Excellence Fund [MOPE IBEF]

Motilal Oswal Private Equity (MOPE) was established in 2006 to give Motilal Oswal Financial Services’ investment approach and expertise a chance to flourish.

MOPE’s goal from the start was to serve the mid-marketing sector, where there was a pressing need for cash and where MOFSL branding had significant clout.

Large Pool of entrepreneurial talent

Due to corporate transformation, there is a large pool of entrepreneurial talent in India.

Proven business model-capital for scale-up

To expand in new regions and lines, a firm will require additional money for growth.

Avenues for the capital of growth

Only large businesses can access public debt markets, which have strict limits.

Opportunities in both listed and unlisted companies

A large percentage of enterprises are still unlisted before their listed date.

Key Investment Framework : Winner Categories, Category Winners

Winner Categories are categories (i.e. sectors) which are –
(1) Expected to grow at least 1.5x nominal GDP growth; and
(2) Consolidated i.e. not too many players to partake of the expected growth.

Category Winners are companies in Winner Categories with:
(1) Entry Barriers / Competitive advantage and
(2) Great Management.

Winning investments are Category Winners
bought at reasonable valuation.

MOPE has designed its investment strategy based on the structural shift in India’s economy to a $4-5 trillion economy over the next five years, resulting in significant potential for many sectors.

1. Investing in Mid-Market Companies: Mid-market businesses are the economy’s growth engines, filling critical gaps in several sectors and regions. The majority of them are family-owned and run based on their local knowledge. Many of these mid-sized businesses aim to develop into large corporate entities. However, this is hindered by the availability of capital, talent, and mentorship.
2. MOPE focuses on growth capital. MOPE prefers to invest in enterprises with solid growth potential as a significant minority owner. Growth capital minority investments allow MOPE to contribute value to the company.
3. Focus on Preferred Sectors: The four primary target industry clusters are: