Motilal Oswal Alternates (MO Alts), the alternative investments arm of Motilal Oswal Financial Services, has made a significant milestone by raising over Rs 1,750 crore for its sixth real estate fund, India Realty Excellence Fund VI (IREF VI). The fund aims to focus on investments across top eight cities in India, positioning itself for sustained growth in the sector.
Key Highlights of IREF VI
MO Alts has committed around Rs 1,300 crore to developers through its platform in this financial year, with Rs 1,000 crore dedicated to projects in Mumbai, Pune, Chennai, Hyderabad, and Kolkata from this latest fund. The fund has invested in mid-income housing projects of prominent developers, including Ajmera Realty, Runwal Enterprises, Ambuja Neotia Group, Casagrand Group, Radiance Realty, Mantra Properties, BSafal Group, Bhagwati & Gami Group, and Candeur Group.
Industry Outlook and Investment Strategy
Anand Lakhotia, MD & Co-Head of real estate funds at MO Alts, expressed confidence in the sector’s growth trajectory, stating that favourable conditions, such as increasing home loan deployments and declining interest rates, align perfectly with their investment strategy. Saurabh Rathi, MD & Co-Head of real estate funds, added that the fund has already committed Rs 1,000 crore across 10 investments within 10 months of its first close and has a robust pipeline under evaluation.
AUM and Exit Successes
MO Alts has made over 168 investments and secured 100 complete exits in real estate, with its cumulative assets under management (AUM) currently standing at more than Rs 9,500 crore. The company aims to complete fundraising for IREF VI in the next 2 months, with nearly 90% of its target fund size secured. Additionally, MO Alts has had success with its earlier funds, making 11 exits with robust returns amounting to Rs 1,000 crore over the last year.
Vision and Future Plans
Vishal Tulsyan, Co-founder and Executive Chairman, MO Alts, emphasized the company’s commitment to delivering value and capitalizing on emerging opportunities. As the sector continues its robust growth trajectory, MO Alts remains bullish on the real estate market’s potential, aiming to bridge the capital gap at the early stages of real estate projects and partner with established developers across the country.
