Motilal Oswal Alternates, the alternative investment arm of Motilal Oswal Group, has marked the final close of its sixth real estate fund at Rs 2,000 crore ($231 million), the company said in a statement.
The fund, Indian Realty Excellence Fund VI (IREF-VI), raised a significant portion of the capital from family offices and Indian high-net-worth individuals. It has also received commitments from offshore investors through the GIFT City route.
The Mumbai-based firm had initially targeted to raise about Rs 2,000 crore for the fund when it launched the vehicle in 2023. This comprised a base target of Rs 1,250 crore and a greenshoe option of Rs 750 crore. The firm, however, rejigged the structure last year when it hit the first close. At the time, it raised the base target to Rs 1,500 crore while reducing the greenshoe option to Rs 500 crore. The hard cap remained unchanged.
The firm said in its statement that 75% of the fund is already committed across 15 real estate projects across Mumbai, Pune, Chennai, Bangalore, Hyderabad, and Kolkata. It is primarily focused on mid-income residential projects. The fund has also recorded its first exit, delivering an internal rate of return (IRR) of 20.25%, it said, without giving any details.
“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,” said Saurabh Rathi, managing director and co-head of real estate at MO Alternates.
MO Alternates’ cumulative assets under management (AUM) in real estate exceeds Rs 10,000 crore across six real estate funds and co-investments. The platform has made over 180 investments and secured more than 110 complete exits.
The alternative investment firm manages more than $2 billion in cumulative AUM across real estate and private equity.
