Motilal Oswal Alternates’ real estate fund, India Realty Excellence Fund IV (IREF IV), has fully exited all 37 investments in its portfolio, delivering a 20.4% portfolio internal rate of return (IRR), the alternative investment arm of Motilal Oswal Group said in a statement on Thursday.
The ₹1,155-crore domestic real estate fund, launched in 2020, provided structured capital to established developers at the pre-approval stage across seven cities.
The fund invested alongside developers including Casagrand, Puravankara, Kolte Patil Developers, Urbanrise, Phoenix, Rajapushpa, Ashwin Sheth and Radiance Realty, among others.
Fund navigated Covid, rate hikes and cost pressures
IREF IV had to navigate several disruptions during its investment lifecycle, including the Covid-19 pandemic, rising interest rates and input costs, as well as geopolitical tensions and conflicts in the Middle East.
These factors created pressure on residential sales and collections, funding availability, construction costs and project execution timelines.
According to MO Alternates, the fund’s strategy during these periods focused on capital protection, disciplined underwriting and active asset management.
“Diversification across 37 investments and seven cities meant that no single project or market could define the Fund’s outcome,” said Saurabh Rathi, Managing Director & Co-Head – Real Estate, MO Alternates.
He said the fund remained closely engaged with developer partners during the Covid disruption and waited for greater clarity on sales, collections and construction before taking decisions on individual investments.
“In real estate credit, performance is not decided at underwriting; it is managed every single day,” Rathi said.
Three of six real estate funds fully exited
The closure of 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 IREF IV now fully realised, three of MO Alternates’ six real estate funds have been fully exited, while two others have made significant payouts to investors and are progressing towards full exits.
The platform’s latest vehicle, IREF VI, remains in its investment phase and is deploying capital selectively into residential projects with established developers.
Real estate platform crosses ₹11,000 crore AUM
MO Alternates said its real estate platform has funded the development of more than 100 million sq ft across six real estate funds, its wholesale business and proprietary book.
The platform has cumulative assets under management of more than ₹11,000 crore, with more than 200 investments and over 150 completed exits.
The broader MO Alternates platform manages more than $3 billion in cumulative AUM across real estate, private equity and private credit.
Structured capital remains the focus
The successful exit from IREF IV comes as India’s residential real estate market has become more formalised and consolidated, according to MO Alternates.
“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.
He said this growth would require patient, structured capital and that the firm intends to use its developer network and investment framework to participate in the sector’s next phase.