Real Estate Fund Six, managed by Motilal Oswal Alternates, reaches its maximum investment limit and shuts its operations
Motilal Oswal Alternates, a leading investment firm, has successfully closed its sixth real estate fund, the Indian Realty Excellence Fund VI (IREF-VI), at a final corpus of Rs 2,000 crore (approximately $231 million) in July 2025. The fund primarily focuses on mid-income residential projects across major Indian cities including Mumbai, Pune, Chennai, Bangalore, Hyderabad, and Kolkata.
The fund raised significant capital from family offices and Indian high-net-worth individuals, with additional commitments from offshore investors through the GIFT City investment route, signaling strong domestic and growing international confidence in Indian real estate credit.
About 75% of the fund's capital is already committed across 15 diverse real estate projects, involving reputed developers such as Ajmera Realty, Runwal Enterprises, Ambuja Neotia Group, Casagrand Group, Radiance Realty, Mantra Properties, Assetz Group, Akshar Group, Bhagwati Group, and ASBL Group. The fund focuses mainly on mid-segment residential developments, addressing the rising demand from urban homebuyers in India.
IREF-VI has already recorded its first exit with an internal rate of return (IRR) of 20.25%, reflecting strong performance and investment strategy, although specific project details were not disclosed. This fundraise marks a 65% growth compared to its predecessor fund, positioning IREF-VI among the largest and fastest domestic capital raises in the Indian real estate credit sector.
Saurabh Rathi, managing director and co-head of real estate at MO Alternates, stated that credit demand for land acquisition in India is accelerating rapidly. Motilal Oswal Alternates' cumulative assets under management (AUM) in real estate exceed Rs 10,000 crore across six real estate funds and co-investments.
Meanwhile, Motilal Oswal Alternates has also marked the final close of its sixth real estate fund, Indian Realty Excellence Fund VI (IREF-VI), at Rs 2,000 crore ($231 million). The firm has also fully exited its second real estate fund.
In other news, A91 Partners-backed healthy snack brand Happilo is looking to raise fresh funds. Motilal Oswal Alternates is involved in a new investment, SK Finance, which is seeking offshore capital before its planned IPO. Local PE firms are also showing interest in Iscon Balaji Foods, a potato flakes and frozen food maker.
- Investors, both domestic and offshore, demonstrated increasing trust in Indian real-estate credit, as evidenced by the significant capital they provided for Motilal Oswal Alternates' Indian Realty Excellence Fund VI (IREF-VI).
- Motilal Oswal Alternates' Indian Realty Excellence Fund VI (IREF-VI) concentrates its investments in mid-segment residential developments, putting a focus on addressing the growing demand from urban homebuyers in India.
