Key Takeaways
- • Motilal Oswal Alternates, the alternative investments arm of Motilal Oswal Group, has fully exited India Realty Excellence Fund IV (IREF IV), a INR 1,155 crore domestic real estate fund, after realizing all 37 portfolio investments.
- • IREF IV delivered a portfolio IRR of 20.4% in rupee terms, which the firm says is in line with its stated return objectives.
- • The 2020-vintage fund provided structured capital to established developers at the pre-approval stage across seven cities, partnering with firms including Casagrand, Puravankara, Kolte Patil Developers, Urbanrise, Phoenix, Rajapushpa, Ashwin Sheth and Radiance Realty.
- • The exit follows the April 2025 full exit of IREF II (18.3% IRR); three of the platform's six real estate funds are now fully exited, and two others have made significant payouts and are on course for full exit.
Summary
IREF IV is a domestic real estate fund of INR 1,155 crore, focused on providing structured capital to established developers at the pre-approval stage across seven cities. Over its lifecycle, the fund partnered with developers including Casagrand, Puravankara, Kolte Patil Developers, Urbanrise, Phoenix, Rajapushpa, Ashwin Sheth and Radiance Realty, among others. The vintage 2020 fund was launched into a period of significant disruption, including the COVID-19 pandemic, rising interest rates and input costs, and heightened geopolitical tensions, including recent conflicts in the Middle East. The firm notes these conditions created short- and medium-term pressure on sales and collections, funding constraints, cost escalations and project delays across the industry.
According to MO Alternates, the portfolio remained resilient through these headwinds, supported by a focus on capital protection, disciplined underwriting and active asset management. The firm attributes its ability to navigate periods of market stress to these practices and to the profitable exits achieved across the fund's life.
The IREF IV closure follows the full exit of India Realty Excellence Fund II (IREF II) in April 2025, which delivered a portfolio IRR of 18.3%. With IREF IV's closure, three of the platform's six real estate funds have now been fully exited, while two others have made significant payouts to investors and are on course for full exit.
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