Motilal Oswal Alternates (“MO Alternates”), the alternative investments arm of Motilal Oswal Group, is pleased to announce the successful closure of its second real estate fund - India Realty Excellence Fund II (“IREF II”) - following the exit of all 14 investments. The fund has delivered a gross IRR of 18.3%, achieving full exit in line with its stated investment philosophy and return objectives.
IREF II, an INR 489 crore domestic real estate fund, focused on providing structured capital to established developers in their mid-income residential projects across India’s leading urban markets. Over its lifecycle, the Fund partnered with reputed developers including Kolte Patil Developers, Casagrand Group, Shriram Properties among others.
IREF II operated through a period marked by multiple disruptions and reforms such as demonetization, the introduction of RERA and GST, the NBFC liquidity crisis, and the COVID-19 pandemic. Each of these created significant short and medium-term challenges for the industry, including sales disruptions, funding constraints, and execution delays. Despite these challenges, IREF II maintained a resilient portfolio, backed by a strong focus on capital protection, underwriting discipline, and active monitoring, enabling it to exit all deals profitably.
MO Alternates’ cumulative assets under management for real estate exceed INR 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 USD 2 billion in cumulative AUM across real estate and private equity.
Vishal Tulsyan, Co-founder and Executive Chairman, MO Alternates said “The successful 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—and MO Alternates is well-positioned to play a meaningful role in its evolution.”
Saurabh Rathi, Managing Director & Co-Head of real estate funds at MO Alternates said “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. Equally, our portfolio’s diversification across cities and counterparties helped us mitigate concentration risks during volatile periods. Above all, this experience has reaffirmed our view that in real estate credit, performance is not just underwritten—it’s managed every day.”
Anand Lakhotia, Managing Director & Co-Head of real estate funds at MO Alternates said “We are deeply thankful to our investors for their unwavering support and trust throughout the IREF II journey. 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. We are proud of the resilience demonstrated throughout this journey and remain committed to replicating this success across our future endeavours.”
With the closure of IREF II, MO Alternates further strengthens its position as one of India’s most experienced real estate credit managers. The firm continues to deploy capital through subsequent funds in the IREF series and co-investments focused on real estate.
MO Alternates remains anchored to its core philosophy of offering structured capital solutions backed by governance, transparency, and risk consciousness. With nearly two decades of experience and a multi-cycle track record, the firm is well-positioned to address the evolving capital needs of Indian developers and the return expectations of its investor base.
