Motilal Oswal Alternates announced on Thursday that it has fully exited and closed its fourth real estate fund, the India Realty Excellence Fund IV (IREF IV), delivering a portfolio internal rate of return of 20.4% after exiting all 37 investments in the portfolio.A Rs 1,155-crore fund that outran the cycle
IREF IV was a Rs 1,155-crore domestic fund of 2020 vintage that provided structured capital to established developers at the pre-approval stage across seven cities, with investments across residential projects. Developer partners included Casagrand, Puravankara, Kolte Patil Developers, Urbanrise, Phoenix, Rajapushpa, Ashwin Sheth and Radiance Realty, among others, according to Business Standard and the Economic Times.
The fund ran through one of the most punishing stretches in recent memory: the COVID-19 pandemic, rising interest rates and input costs, and geopolitical tensions and Middle East conflicts that pressured residential sales, collections, funding availability and project execution. The 20.4% return marks a notable proof point for India's maturing structured-credit real estate market at a time when bank lending to developers remains selective and private capital is filling the gap.
Track record builds
The closure follows the full exit of IREF II in April 2025, which delivered a portfolio IRR of 18.3%. With IREF IV now closed, three of MO Alternates' six real estate funds are fully exited, two others have made significant payouts and are progressing toward full exit, and IREF VI is in its investment phase.
The broader platform's numbers underline the scale: MO Alternates' real estate platform has cumulative assets under management of more than Rs 11,000 crore, has funded more than 100 million square feet, and has made over 200 investments with more than 150 completed exits. The overall MO Alternates platform manages more than $3 billion in AUM across real estate, private equity and private credit.
What the leadership said
Vishal Tulsyan, co-founder and executive chairman of MO Alternates, said Indian real estate is now "more formalised, consolidated and transparent" than at any point in history, with credible developers scaling on sustained housing demand. Saurabh Rathi, MD and co-head of real estate, credited the platform's capital-protection and underwriting approach for navigating the disruptions, per Business Standard.
Sources: Business Standard: Motilal Oswal's property fund exits 37 projects, earns 20.4% return | Economic Times: Motilal Oswal Alternates makes full exit from Rs 1,155 cr realty fund