Motilal Oswal Private Equity (MOPE)

Funds managed

Fund nameAsset ClassLicense

India Business Excellence Fund
India Business Excellence Fund II
India Business Excellence Fund-III
India Business Excellence Fund- IV

PE – Growth Stage
PE – Growth Stage
PE – Growth Stage
PE – Growth Stage

SEBI AIF CAT II
SEBI AIF CAT II
SEBI AIF CAT II
SEBI AIF CAT II

About

MOPE Investment Advisors Private Limited (“MOPE”) was started in February 2006 as an alternative equity investment platform in the mid-market space. It was sponsored by Motilal Oswal Financial Services Limited (“MOFSL”) 

Motilal Oswal AIF managers in India had an AUM of $ 35,36,11,960 in Q1FY19 ($12,10,44,094 bn in Q1FY18) within a span of two years

Managing and/or advising three growth capital funds

Key staff

  1. Vishal Tulsyan (MD & CEO) – Vishal founded MOPE in 2006 with MOFSL being the sponsor. At MOPE, Vishal looks to build a platform to channelize long-term capital to create valuable enterprises and successful entrepreneurs. Prior to founding MOPE, Vishal was with Rabobank during its formative years in India, helping build its corporate finance and investment banking franchise. During his Rabobank tenure, he executed ~50 transactions aggregating more than Rs 900 bn & helped build the life sciences practice in India into a key business driver. Vishal holds a Bachelor’s Degree in Commerce from the prestigious St. Xaviers’ College, Kolkata, and is a member of the Institute of Chartered Accountants of India (all-India # 21 rank).
  1. Dharmesh Sanghavi (Chief Technology Officer) – He is responsible for bringing digital transformation, frame strategic IT roadmap, and efficient process improvement amongst our portfolio companies.
  1. Bharat Kedia (Chief Operating Officer) – Bharat is responsible for the management of operations for growth funds and real estate funds including institutional fundraising, investment monitoring, fund compliance, fund accounting and administration, investor relationship. He also represents as a board member of Dairy Classic.

For more information about the team of MOPE: https://motilaloswalpe.com/Team.aspx

Investment Philosophy (for the firm)

  • Investments in Mid-Market Enterprises

Mid-market enterprises are the growth engines of the economy filling crucial gaps in various industries and geographies. The vast majority of them are family-owned and operate on the strength of their local knowledge. Many of these mid-market enterprises aim to transform into a large institutionalized organizations. However, this is restricted by the ease of access to capital, talent, and mentorship.

  • Focus on Growth Capital

MOPE prefers to enter as a substantial minority shareholder in companies exhibiting superior growth. Growth capital minority investments allow MOPE to add value to the business.

  • Focus on Preferred Sectors

The four primary target industry clusters are:

  • Consumer
  • Financial services
  • Life science
  • Industrial

 Media

  1. Title: Motilal Oswal Private Equity announces the launch of a new INR 4,000 crore (~USD 550 million) PE fund

Source: Press release 

Date: 20 Jul 2021.

Link: https://motilaloswalpe.com/MediaContents.aspx

Summary: 

“The PE/VC ecosystem in India has really come of age over the last decade and growth equity capital will continue to play a pivotal role as India moves from a USD 3 trillion economy to over USD 10trillion in the next decade. With our proven track record of the past 15 years, MOPE has established itself as a ‘partner-of-choice for Indian businesses and entrepreneurs with the capability and vision to take their enterprises to the next level. Despite the Covid-19 situation and restrictions across the country, we have been actively making new investments as well as delivering exits to our investors. As with our previous funds, even with IBEF IV, we will continue to pursue our time-tested investment framework of QGLP (Quality, Growth, Longevity, and Price) to back market-leading, mid-market companies in our preferred sectors,” said Vishal Tulsyan, Managing Director and CEO of MOPE

  1. Title: Leadership Summit 3.0 | Interview | Mr. Vishal Tulsyan, MD & CEO, Motilal Oswal Private Equity

Source: IIM Raipur

Date: 16 Oct 2019

Link: https://www.youtube.com/watch?v=Teo2JFhNLnE

Summary:

  • Explains the importance of inquisitive and how the hunger for knowledge is of utmost importance in the field of equity. 
  • Reading, and cultivating more knowledge about the market (for ex. Warren Buffet’s letter to their shareholders) 
  • also emphasized how emotional intelligence is what took him to his present moment of success 
  1. Title: Vishal Tulsyan (MOPE) at MOCA 2020

Source: Motilal Oswal Financial Services Ltd

Link: https://www.youtube.com/watch?v=xuTmZJ6yzrs

Summary: 

  • PE market in India and its tremendous growth over the past several years 
  • Middle-market strategy to invest in the company to remain invested for long term for compounding to work 
  • Talks about the early opportunities spotted by MOPE like AU small finance bank which still has the tremendous opportunity of growth since it’s predominantly operating in Rajasthan
  • QGLP investment philosophy 
  • Value addition of MOPE in invested companies like advising, providing proper channels, and providing resources 

Analyst questions

  1. How does the management approach differ as to the CEO of MOPE from the approach taken as the CEO of MORE? 
  2. How does MOPE provide investors with adequate data about the company fund has invested in since the financials might not be publicly available? 
  3. What are the set of criteria MOPE follows to evaluate the appropriate health of the company to invest in? 
  4. Since India Business Excellence Fund (“IBEF”) is currently in divestment mode, so how does MOPE evaluate the criteria for an exit? 
  5. When MORE starts a new fund do you get the same investors from the previous fund or new ones’? And if the latter is true, how do you market your product for the new fund? 
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