New Delhi, Oct. 8 -- Motilal Oswal Alternates, the alternative investments arm of Motilal Oswal Group, has closed its fourth real-estate fund, India Realty Excellence Fund IV (IREF IV), exiting all 37 investments in the portfolio, the company said in a statement.

The fund claims to have delivered a portfolio internal internal rate of return (IRR) of 20.4% in rupee terms, in line with its return objective. Realty-focussed private equity firms typically chase 15-20% IRR in local currency.

IREF IV, a 1,155 crore (around $199.3 million) domestic real-estate fund, was focussed on providing structured capital to established developers at the pre-approval stage across seven cities. Over its lifecycle, it partnered with developers including Casagrand, Puravankara, Kolte Patil Developers, Urbanrise, Phoenix, Rajapushpa, Ashwin Sheth and Radiance Realty, among others.

A 2020 vintage fund, IREF IV hit the market in the midst of the COVID-19 pandemic, and had seen rising interest rates and input costs, and heightened geopolitical tensions, including the recent conflicts in the Middle East. These disruptions, the investment firm said, created significant short and medium-term challenges for the real-estate industry, including pressure on sales and collections, funding constraints, cost escalations and delays in project execution. The firm claimed to have delivered strong performance despite the challenges.

Saurabh Rathi, managing director & co-head - real estate, MO Alternates, said, "Diversification across 37 investments and seven cities meant that no single project or market could define the fund's outcome".

IREF IV follows the full exit of India Realty Excellence Fund II (IREF II) in April 2025, which delivered a portfolio IRR of 18.3% in rupee terms. With this closure, three of the platform's six real-estate funds have now been fully exited while two others are on course for a full exit.

The platform's sixth and latest fund, India Realty Excellence Fund VI (IREF VI), is currently in its investment phase and is actively deploying capital across select residential projects with established developers.

MO Alternates, through its real-estate platform, has so far funded the development of over 100 million sq ft across the six real-estate funds, its wholesale and prop book. Overall, the real estate platform has a cumulative assets under management (AUM) worth more than Rs 11,000 crore and has made over 200 investments and secured more than 150 complete exits. MO Alternates manages more than $3 billion in cumulative assets across real estate, private equity and private credit.

Published by HT Digital Content Services with permission from VC Circle.