Motilal Oswal Alternates Raises ₹2,000 Cr for Realty Fund, Achieves 20% IRR

Motilal Oswal Alternates has raised ₹2,000 cr for its sixth real estate fund, Indian Realty Excellence Fund VI, with a 65% increase from its predecessor. The fund has already deployed over 75% of its corpus across 15 projects in key urban hubs and has delivered a 20.25% IRR. The platform has committed over ₹2,500 cr across 35 real estate deals and exited over 30 investments worth ₹2,200 cr. Its cumulative AUM in real estate now exceeds ₹10,000 cr.

Title: Motilal Oswal Alternates Closes ₹2,000 Cr Real Estate Fund with 65% Increase

Motilal Oswal Alternates (MO Alternates), the alternative investments arm of the Motilal Oswal Group, has successfully closed its sixth real estate fund, the Indian Realty Excellence Fund VI (IREF-VI), with commitments aggregating to ₹2,000 crore. This represents a 65% increase over its predecessor, indicating strong investor confidence in the Indian real estate market [1].

The fund, which is primarily focused on mid-income residential developments, has already deployed over 75% of its corpus across 15 projects in key urban hubs such as Mumbai, Pune, Chennai, Bengaluru, Hyderabad, and Kolkata. This strategic allocation underscores the platform's commitment to high-growth urban markets [1].

MO Alternates has marked its first exit from IREF-VI, delivering an impressive internal rate of return (IRR) of 20.25%. Since the beginning of 2024, the firm has committed over ₹2,500 crore across more than 35 real estate deals and has exited over 30 investments worth ₹2,200 crore. The cumulative assets under management (AUM) in real estate now exceed ₹10,000 crore, making MO Alternates one of the largest homegrown platforms in the alternative real estate space [1].

The fund has garnered significant interest from Indian high-net-worth individuals (HNIs), family offices, and offshore investors through the GIFT City route, reflecting a robust domestic and global investor base. Developer partners include prominent names such as Ajmera Realty, Runwal Enterprises, Ambuja Neotia, Casagrand, Radiance Realty, and Assetz Group, among others [2].

Saurabh Rathi, Managing Director & Co-Head (Real Estate) at MO Alternates, highlighted the increasing demand for land acquisition in India, driven by a renewed appetite for residential development, rising land values, and limited availability of structured capital. Alternative platforms like MO Alternates are stepping in to bridge the funding gap with tailored solutions that meet the unique needs of developers [3].

Vishal Tulsyan, Co-founder and Executive Chairman of MO Alternates, noted that the platform’s decade-long track record and domain-led underwriting capability have helped build a differentiated position in India’s alternative investment landscape. The overwhelming response from investors is a testament to MO Alternates’ disciplined approach and commitment to high standards of performance and governance [3].

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. The platform's success in securing significant commitments and achieving strong returns underscores its strategic positioning in the market [3].

References:
[1] https://realty.economictimes.indiatimes.com/news/industry/motilal-oswal-alternates-raises-2000-crore-for-indian-realty-excellence-fund-vi/122838899
[2] https://www.business-standard.com/markets/news/motilal-oswal-alternates-closes-rs-2000cr-sixth-real-estate-fund-focused-mid-segment-residential-development-125072201407_1.html
[3] https://realtynxt.com/commercial-news/2025-07-22/motilal-oswal-alternates-closes-2000-cr-real-estate-fund-one-of-indias-largest-in-realty-credit