Motilal Oswal Alternates announces full exit of its fourth real estate fund, delivering 20.4% IRR
Motilal Oswal Alternates (“MO Alternates”), the alternative investments arm of Motilal Oswal Group, is pleased to announce the closure of its fourth real estate fund, India Realty Excellence Fund IV (“IREF IV”), following the exit of all 37 investments in the portfolio. The Fund has delivered a portfolio IRR of 20.4%, in line with its stated investment philosophy and return objectives.
IREF IV, an INR 1,155 crore domestic real estate fund, focused on providing structured capital to established developers at the pre-approval stage across seven cities. Over its lifecycle, the Fund partnered with reputed developers including Casagrand, Puravankara, Kolte Patil Developers, Urbanrise, Phoenix, Rajapushpa, Ashwin Sheth and Radiance Realty, among others.
IREF IV, a 2020 vintage fund, navigated multiple macroeconomic disruptions such as the COVID-19 pandemic, rising interest rates and input costs, and heightened geopolitical tensions, including the recent conflicts in the Middle East. These disruptions created significant short and medium-term challenges for the real estate industry, including pressure on sales and collections, funding constraints, cost escalations and delays in project execution. Despite these headwinds, IREF IV maintained a resilient portfolio, supported by a strong focus on capital protection, disciplined underwriting and active asset management, enabling the Fund to successfully navigate periods of market stress and deliver profitable exits.
IREF IV follows the full exit of India Realty Excellence Fund II (“IREF II”) in April 2025, which delivered a portfolio IRR of 18.3%. With this closure, three of the platform’s six real estate funds have now been fully exited while two others have made significant pay-outs to the investors and are on course for full exit. The platform's latest fund, India Realty Excellence Fund VI ("IREF VI"), is currently in its investment phase and is actively deploying capital across select residential projects with established developers.
MO Alternates, through its real estate platform, has funded the development of over 100 million sq. ft. across six real estate funds, its wholesale and prop book. Overall, the real estate platform has a cumulative AUM of more than INR 11,000 Cr and has made over 200 investments and secured more than 150 complete exits.
Mr. Vishal Tulsyan, Co-founder and Executive Chairman, MO Alternates, said, “The closure of IREF IV is a significant milestone for our platform. It adds another fully realised, multi-cycle track record to our franchise, validates an investment process tested through a liquidity crisis, a pandemic and a sharp interest-rate cycle, and deepens the trust we have built with investors and developers alike. 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. That growth will need patient, structured capital. With our experience, developer network and disciplined framework, MO Alternates is well placed to play a meaningful role in the sector’s next phase.”
Mr. Saurabh Rathi, Managing Director & Co-Head – Real Estate, MO Alternates, said, “IREF IV has strengthened our belief in the MO Alternates investment approach. Diversification across 37 investments and seven cities meant that no single project or market could define the Fund’s outcome. 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. That discipline was our real differentiator, and it leaves us with one clear lesson: in real estate credit, performance is not decided at underwriting; it is managed every single day.”
Mr. Anand Lakhotia, Managing Director & Co-Head – Real Estate, MO Alternates, said, “We are deeply grateful to our investors for their unwavering support through every phase of the IREF IV journey, including some of the most challenging years the sector has seen. Their patience gave us the room to make the right decisions rather than the quick ones. This closure is a testament to our investment discipline and our active asset management approach, and we remain committed to replicating this success across our current and future funds.”
With the closure of IREF IV, MO Alternates further strengthens its position as one of India’s most experienced real estate credit managers. The platform continues to deploy capital through subsequent funds in the IREF series, and through its wholesale and prop book, anchored in its philosophy of providing structured capital solutions underpinned by strong governance, transparency and a disciplined approach to risk.
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