Motilal Oswal Alternates raises ₹2,000 cr for realty fund, clocks 20% IRR

Motilal Oswal Alternates (MO Alternates), the alternative investments arm of Motilal Oswal Group, on Tuesday announced the final close of its sixth real estate fund—Indian Realty Excellence Fund VI (IREF VI)—with commitments totaling ₹2,000 crore. The raise marks a 65% jump over its predecessor and is among the fastest domestic capital raises in India’s real estate credit market, the company said in a statement.

 

The fund garnered significant interest from Indian high-net-worth individuals (HNIs), family offices, and offshore investors through the GIFT City route.

 

Over 75% of the fund corpus is already deployed across 15 projects in key urban hubs including Mumbai, Pune, Chennai, Bengaluru, Hyderabad, and Kolkata. Developer partners include names like Ajmera Realty, Runwal Enterprises, Ambuja Neotia, Casagrand, Radiance Realty, and Assetz Group, among others. The fund is focused largely on mid-income housing, in line with robust end-user demand trends.

 

 IREF VI has already completed its first exit, delivering an internal rate of return (IRR) of 20.25%.

 

Since the beginning of 2024, MO Alternates has committed over ₹2,500 crore across more than 35 real estate deals and has exited over 30 investments worth ₹2,200 crore. Its cumulative AUM in real estate has now crossed ₹10,000 crore, making it one of the largest homegrown platforms in the alternative real estate space.

 

The firm has made over 180 investments to date, securing more than 110 full exits. It currently manages over $2 billion in assets across real estate and private equity strategies.

 

The platform’s cumulative assets under management (AUM) in real estate now exceed Rs 10,000 crore across six real estate funds and co-investments. 

 

“Credit demand for land acquisition is accelerating rapidly in India, supported by strong residential appetite, rising land prices, and tightening of bank lending norms,” said Saurabh Rathi, MD & Co-Head (Real Estate), MO Alternates. “Alternative platforms like ours are stepping in to bridge funding gaps with flexible, tailored structures.”

 

Anand Lakhotia, MD & Co-Head (Real Estate), added, “The overwhelming response from investors is a testament to our disciplined approach. We are committed to upholding high standards of performance and governance.”

 

Vishal Tulsyan, Co-founder and Executive Chairman of MO Alternates, said the platform’s decade-long track record and domain-led underwriting capability have helped build a “differentiated position in India’s alternative investment landscape.”

 

As competition heats up in India’s real estate debt space, MO Alternates is positioning IREF VI to back high-quality developers with clear exit visibility and strong project fundamentals.