Motilal Oswal Alternates, the alternative investments arm of Motilal Oswal Group, on Tuesday said it has hit the final close of its sixth real estate fund, Indian Realty Excellence Fund VI (IREF VI), at Rs 2,000 crore ($231.5 million), marking a 65% jump over its predecessor.
The fund received strong backing from Indian high-net-worth individuals and family offices, alongside offshore investors via the GIFT City route, underlining growing confidence in India’s real estate credit market.
IREF VI has already deployed 75% of the corpus across 15 projects in major cities, including Mumbai, Pune, Bangalore, Chennai, Hyderabad, and Kolkata. Partner developers include Ajmera Realty, Runwal Enterprises, Ambuja Neotia, Casagrand, Radiance Realty, and others, with a focus on mid-income residential developments.
“Credit demand for land acquisition in India is accelerating rapidly, driven by a renewed appetite for residential development, rising land values, and limited availability of structured capital. With the continued tightening of regulatory norms for traditional lenders, alternative credit platforms are increasingly stepping in to bridge the funding gap with tailored solutions that meet the unique needs of developers,” Saurabh Rathi, Managing Director & Co-Head (Real Estate) at MO Alternates, said.
The fund claims that it has also marked its first exit, delivering a 20.25% internal rate of return (IRR).
Since early 2024, MO Alternates claims to have committed over Rs 2,500 crore across over 35 projects through funds and co-investments, and has exited more than 30 investments with total divestments exceeding Rs 2,200 crore.
The platform now manages over Rs 10,000 crore in cumulative AUM across six real estate funds and co-investments. Its real estate strategy has executed more than 180 transactions and achieved over 110 full exits. Including private equity, the alternative platform oversees more than $2 billion in cumulative AUM.
