Motilal Oswal fully exits US$156.9M realty fund at 20.4% return
What's the deal? Motilal Oswal AlternatesDealroom has a profile for this one. Try Dealroom →, the alternative investments arm of India's Motilal Oswal GroupDealroom has a profile for this one. Try Dealroom →, has fully exited its fourth real estate fund, India Realty Excellence Fund IV (IREF IV), after completing exits from all 37 investments across seven cities. The US$156.9M, 2020-vintage fund generated a portfolio internal rate of return of 20.4%.
How it worked: IREF IV provided structured capital to established developers at the pre-approval stage, backing residential projects in multiple markets. Its portfolio included CasagrandDealroom has a profile for this one. Try Dealroom →, PuravankaraDealroom has a profile for this one. Try Dealroom →, Kolte Patil DevelopersDealroom has a profile for this one. Try Dealroom →, UrbanriseDealroom has a profile for this one. Try Dealroom →, Phoenix, RajapushpaDealroom has a profile for this one. Try Dealroom →, Ashwin ShethDealroom has a profile for this one. Try Dealroom →, and Radiance RealtyDealroom has a profile for this one. Try Dealroom →.
Why it matters: The investment period spanned the Covid-19 pandemic, rising interest rates and input costs, and geopolitical disruptions — all of which hit sales, collections, funding, and project execution across the sector. The firm said it focused on capital protection, disciplined underwriting, and active asset management throughout.
What they said: "When COVID-19 brought the sector to a standstill, we chose patience over haste, staying close to and supporting our developer partners," said Saurabh Rathi, managing director and co-head of real estate at MO Alternates.
The bigger platform: The exit follows the full close of IREF II in April 2025, which returned an 18.3% IRR. Three of the platform's six real estate funds have now been fully exited; two others have made significant payouts and are progressing towards exit. Its latest fund, IREF VI, is in its investment phase, deploying capital across select residential projects.
By the numbers: Across its real estate platform, MO Alternates has funded more than 100 million sq ft through six funds, its wholesale business, and proprietary book. It holds cumulative real estate assets under management of more than US$1.49B, with over 200 investments and more than 150 completed exits. In total, the firm manages more than $3 billion across real estate, private equity, and private credit.
The signal: Institutional money in Indian real estate is shifting towards structured credit and alternative capital. With banks staying selective on developer lending, private credit platforms have become a key funding source for residential and commercial projects — with capital increasingly flowing to established developers and assets with identifiable cash flows.
Read more: realty.economictimes.indiatimes.com
Image credit: Premshree Pillai
