Motilal Oswal alternates closes ₹2,000 crore sixth real estate fund

Motilal Oswal Alternates closes its sixth real estate fund, raising Rs 2,000 crore to focus on mid-income residential development, meeting rising demand from urban homebuyers

Motilal Oswal Alternates (MOA), the alternative investment arm of Motilal Oswal Group, announced the closure of its sixth real estate fund – Indian Realty Excellence Fund VI (IREF-VI) – raising Rs 2,000 crore. The fund’s portfolio is primarily focused on mid-income residential developments designed to meet the rising demand from urban homebuyers.

 

MOA noted that a substantial share of the capital was raised from family offices and Indian high-net-worth individuals (HNIs), underscoring strong domestic conviction in the real estate credit space. Additionally, commitments from offshore investors via the GIFT City route reflect growing global confidence in the Indian real estate market.

 

 

Saurabh Rathi, Managing Director & Co-Head (Real Estate) at MOA, said, “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 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.”

 

MOA has allocated capital across 15 real estate projects, partnering with leading developers such as Ajmera Realty, Runwal Enterprises, Ambuja Neotia Group, Casagrand Group, Radiance Realty, Mantra Properties, Assetz Group, Akshar Group, Bhagwati Group, and ASBL Group. To date, 75 per cent of the fund has been deployed across projects in key urban markets, including Mumbai, Pune, Chennai, Bengaluru, Hyderabad, and Kolkata. 

 

MOA has marked its first exit from IREF VI, delivering an internal rate of return (IRR) of 20.25 per cent. To date, it has executed over 180 investments and achieved more than 110 full exits.

 

Since the beginning of 2024, the firm, through its funds and co-investments, has committed over Rs 2,500 crore across more than 35 real estate projects. It has also exited over 30 investments, with total divestments exceeding Rs 2,200 crore.

 

Commenting on the fund’s closure, Vishal Tulsyan, Co-founder and Executive Chairman of MOA, noted that over the past decade, the firm has established a differentiated position in the alternative asset management space by combining deep sector expertise with a robust governance framework.

 

The platform’s cumulative assets under management (AUM) in real estate exceed Rs 10,000 crore, spread across six real estate funds and multiple co-investments. Overall, the alternative investments platform manages more than $2 billion in cumulative AUM across real estate and private equity strategies.