Motilal Oswal Alternates, the alternative investments division of the Motilal Oswal Group, has successfully concluded its India Realty Excellence Fund IV (IREF IV) by fully exiting all 37 investments made since the fund's inauguration in 2020. This ₹1,155 crore fund achieved a notable portfolio internal rate of return (IRR) of 20.4%, despite facing numerous challenges within the real estate sector during its investment period. The fund primarily aimed to provide structured capital to reputable developers, focusing on residential projects across key markets in India.
The portfolio of IREF IV featured investments in several well-known developers, including Casagrand, Puravankara, and Kolte Patil Developers, among others. This strategic diversification allowed the fund to tap into various segments of the residential market, which has shown resilience in the face of economic fluctuations. Vishal Tulsyan, Co-founder and Executive Chairman of MO Alternates, stated that the closure of IREF IV signifies an important achievement for their investment platform. He noted that the Indian real estate market is currently more formalized, consolidated, and transparent than ever before, with credible developers capitalizing on sustained housing demand across multiple cities.
The investment horizon of IREF IV intersected with significant disruptions, notably the COVID-19 pandemic and subsequent economic challenges, including rising interest rates and increased input costs. These factors had a profound impact on sales, collections, and project execution across the industry. However, MO Alternates maintained a disciplined approach throughout this period, emphasizing capital protection, rigorous underwriting, and proactive asset management. This strategy allowed the firm to navigate the complexities of the market and support its developer partners effectively.
As of now, this marks the third full exit from the firm's six real estate funds, following the successful winding up of IREF II in April 2025, which yielded an IRR of 18.3%. The firm’s latest fund, IREF VI, is currently in its investment stage, focusing on select residential projects with established developers. Overall, MO Alternates has funded over 100 million square feet through its real estate platform and boasts cumulative assets under management exceeding ₹11,000 crore. With over 200 investments and more than 150 complete exits, the firm continues to strengthen its position within the Indian real estate investment landscape while adapting to evolving market conditions.
