Motilal Oswal Alternates closes ₹2,000 crore real estate fund; marks record domestic raise

Motilal Oswal Alternates, the alternative investments arm of Motilal Oswal Group, has announced the final close of its sixth real estate fund – Indian Realty Excellence Fund VI (IREF-VI), raising commitments worth ₹2,000 crore. The company said the latest fundraise marks a 65% growth compared to its predecessor and ranks among the largest and fastest domestic capital raises in India’s real estate credit space.

A significant portion of the capital for this fund has been raised from family offices and Indian HNIs, reflecting strong domestic conviction in real estate credit as a resilient and rewarding asset class. The fund has also received commitments from offshore investors through the GIFT City route, highlighting growing global confidence in Indian real estate.

With 75% of the fund already committed across 15 diverse real estate projects spanning Mumbai, Pune, Chennai, Bengaluru, Hyderabad, and Kolkata, MO Alternates has partnered with leading developers including Ajmera Realty, Runwal Enterprises, Ambuja Neotia Group, Casagrand Group, Radiance Realty, Mantra Properties, Assetz Group, Akshar Group, Bhagwati Group, and ASBL Group. The fund’s portfolio is primarily focused on mid-income residential developments designed to meet the rising demand from urban homebuyers.

MO Alternates has already recorded its first exit from this IREF-VI, delivering an impressive internal rate of return (IRR) of 20.25%.

Since the start of 2024, MO Alternates, through its funds and co-investments, has committed over ₹2,500 crore across more than 35 real estate projects and achieved full exits from over 30 investments, with total divestments exceeding ₹2,200 crore.

The platform’s cumulative assets under management (AUM) in real estate now exceed ₹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. Overall, the alternative investments platform manages more than $2 billion in cumulative AUM across real estate and private equity.

Saurabh Rathi, Managing Director & Co-Head (Real Estate) at MO Alternates, said 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. Our ability to underwrite across markets and diversify developer partnerships has been a key strength, and we believe the current environment presents significant headroom for calibrated growth.”

Anand Lakhotia, MD & Co-Head (Real Estate) at MO Alternates, said that as custodians of this capital, the company remains committed to upholding the highest standards of discipline, transparency, and performance.

Vishal Tulsyan, Co-founder and Executive Chairman, MO Alternates, said MO Alternates has built a differentiated position in alternative asset management by combining deep domain expertise with a strong governance framework. “We remain committed to expanding our footprint and continuing to deliver consistent outcomes across market cycles.”

MO Alternates manages over $2 billion in cumulative AUM across real estate and private equity. Within real estate, the platform’s cumulative assets under management currently exceed ₹10,000 crore across six real estate funds and co-investments.