Motilal Oswal Alternates makes full exit from Rs 1,155 cr realty fund

Mumbai: Motilal Oswal Alternates, the alternative investments arm of Motilal Oswal Group, has fully exited its fourth real estate fund, India Realty Excellence Fund IV (IREF IV), after completing exits from all 37 investments across seven cities.

The Rs 1,155 crore, 2020-vintage fund generated a portfolio internal rate of return (IRR) of 20.4%. The fund provided structured capital to established developers at the pre-approval stage, with investments across residential projects in multiple markets.

Its portfolio included Casagrand, Puravankara, Kolte Patil Developers, Urbanrise, Phoenix, Rajapushpa, Ashwin Sheth and Radiance Realty, among others.


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“The closure of IREF IV is a significant milestone for our platform…Indian real estate today is more formalised, consolidated and transparent than at any point in its history, and credible developers are scaling across cities on the back of sustained housing demand,” said Vishal Tulsyan, Co-founder and Executive Chairman, MO Alternates.

The investment period coincided with several disruptions to the real estate sector, including the Covid-19 pandemic, rising interest rates and input costs, as well as geopolitical disruptions. These affected sales and collections, availability of funding and project execution across the sector.

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According to MO Alternates, its approach focused on capital protection, disciplined underwriting and active asset management during the investment period.

The closure follows the full exit of IREF II in April 2025, which delivered a portfolio IRR of 18.3%. With IREF IV, three of the platform’s six real estate funds have now been fully exited, while two others have made significant payouts to investors and are progressing towards full exit.

Its latest fund, IREF VI, is currently in its investment phase and is deploying capital across select residential projects with established developers.

Across its real estate platform, MO Alternates has funded more than 100 million sq ft through six real estate funds, its wholesale business and proprietary book. The platform has cumulative real estate assets under management of more than Rs 11,000 crore, with over 200 investments and more than 150 complete exits.

“When COVID-19 brought the sector to a standstill, we chose patience over haste, staying close to and supporting our developer partners and waiting for clarity on sales, collections and construction before taking timely informed decisions on each investment,” said Saurabh Rathi, MD & Co-Head – Real Estate, MO Alternates.

MO Alternates manages more than $3 billion in cumulative assets across real estate, private equity and private credit.

Institutional investment in Indian real estate has increasingly shifted towards structured credit and alternative capital, alongside traditional private equity investments.

As banks remain selective in lending to developers, private credit funds and alternative investment platforms have emerged as an important source of capital for residential and commercial projects, particularly at the pre-approval and construction stages.

The market has also seen greater participation from global investors, sovereign funds and institutional platforms, with capital increasingly directed towards established developers and assets with identifiable cash flows.