(MO Alternates), the
alternative investment arm of
Motilal Oswal Group, has made exits worth over
Rs 1,050 crore from all 14 investments under its second real estate fund,
India Realty Excellence Fund II.The fund, with a corpus of Rs 489 crore, focused on providing
structured capital to developers for mid-income residential projects across key urban markets in India. The capital was deployed in cities with significant housing demand and was aimed at supporting project completion and delivery timelines.
With this, the fund--having invested Rs 680 crore including reinvestments--has delivered a gross internal rate of return (IRR) of 18.3%, achieving full exit in line with its stated investment philosophy and return objectives.
“The closure of IREF II reinforces our belief in disciplined investing backed by on-ground insights, strong governance, and a relentless focus on execution. Looking ahead, we remain highly optimistic about the Indian real estate sector. With increasing formalisation, stronger balance sheets, and a growing appetite for institutional capital, we believe this is a defining decade for real estate in India,” said Vishal Tulsyan, Co-founder and Executive Chairman, MO Alternates.
Investments and exits were made in projects of developers such as
Kolte Patil Developers, Casagrand Group,
Shriram Properties, and others. The fund's cycle reflected typical timelines for structured real estate investments in the mid-income segment and the exits were achieved through repayments and project completions.
“This has been a deeply instructive fund cycle. The importance of proactive asset management--spotting stress early, taking swift action, and maintaining developer alignment--has stood out as a key differentiator,” said Saurabh Rathi, MD & Co-Head of real estate funds at MO Alternates.According to him, the portfolio’s diversification across cities and counterparties helped it mitigate concentration risks during volatile periods.“The fund’s ability to deliver superior risk-adjusted returns despite a challenging macro environment, is a testament to our investment discipline and active asset management approach,” Anand Lakhotia, MD & Co-Head of real estate funds at MO Alternates.
According to him, the fund navigated disruptions including demonetization, implementation of RERA and GST, the NBFC liquidity crisis, and COVID-19--which affected sales, funding, and execution--yet maintained a resilient portfolio through capital protection, disciplined underwriting, and active monitoring, enabling profitable exits from all investments.
MO Alternates’ cumulative assets under management for real estate stand at over 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. Overall, the alternative investments platform manages more than $2 billion in cumulative AUM across real estate and private equity.
