Motilal Oswal Alternates Launches Sixth Fund to Unlock Growth in Indian Real Estate

Motilal Oswal Alternates (MO Alts) has proudly announced the initial closing of its sixth real estate fund, the India Realty Excellence Fund VI (IREF VI), marking a significant milestone in its journey. Launched with a goal of raising Rs 2,000 crore, the fund has successfully secured commitments of approximately Rs 1,250 crore in its first phase.

To date, MO Alts has channeled investments into the real estate sector via five dedicated funds, alongside managing various standalone and proprietary real estate investments. As a seasoned entity in real estate management, MO Alts boasts over 150 investments, channeling around Rs 7,500 crore across 50 developers nationwide. The firm has also completed over 85 successful exits, achieving an impressive internal rate of return (IRR) exceeding 20% from its pre-approval ventures.

IREF VI aims to strategically invest in early-stage, predominantly mid-income and affordable residential projects across India's top eight cities, including Mumbai, Delhi-NCR, Pune, Bangalore, Chennai, Hyderabad, Kolkata, and Ahmedabad. The fund has attracted investments from a diverse group of high net worth individuals, non-resident Indians, and family offices/corporates, and is structured as an alternative investment fund (AIF Category II).

Under the umbrella of Motilal Oswal Financial Services Limited, MO Alts manages over $2 billion across its growth stage private equity and real estate verticals.

Vishal Tulsyan, MD & CEO of MO Alts, expressed his enthusiasm over achieving the largest and quickest initial closure for their real estate funds thus far. This achievement, amidst a bullish equity market, reflects the deep trust investors have in MO Alts' capabilities. Optimistic about the future of the real estate market, Tulsyan is committed to maintaining MO Alts' position as a premier capital provider within the sector, capitalizing on numerous opportunities in the coming years.

Saurabh Rathi and Anand Lakhotia, co-heads of real estate at MO Alts, shared insights on the Indian real estate market's resilience and growth. They highlighted the high demand in the residential sector and the office market's strong performance, nearing pre-pandemic levels. With an anticipated continued momentum, the need for early-stage capital is more pronounced than ever.

MO Alts plans to meet this demand with its proven track record, conservative underwriting practices, and robust risk management framework. Lakhotia expressed gratitude towards their investors for their ongoing trust and highlighted the promising deal flow and investment opportunities across major cities, poised for attractive risk-adjusted yields.