Motilal Oswal Alternates achievesfirst close at ~INR 1,250 Cr for its sixth real estate fund
Mumbai, 21stFebruary 2024: Motilal Oswal Alternates (“MOAlts”), the alternative investments arm of Motilal Oswal Financial ServicesLimited has announced the first close of IndiaRealty Excellence Fund VI (IREF VI), its sixth real estate fund. The Fund,launched with a target corpus of INR 2,000 Cr (including a green shoe of INR500 Cr) has received commitments aggregating ~INR 1,250 Cr in the first close.
MO Alts, till date, has invested capitalin the real estate sectorthrough five real estate funds.The Firm also manages other standalone and proprietary investments in the real estate space. MO Alts is a seasoned real estate manager and has till date undertaken more than 150 investments and funded ~INR 7,500 Cr across50 developers in India. They have also successfully exitedmore than 85 investments and generated an IRRof more than 20% from their pre-approval bets.
IREFVI will strategically focus on early-stage investments pre-dominantly inmid-income/affordable residential projects across India''s top 8 cities,including Mumbai, Delhi-NCR, Pune, Bangalore, Chennai, Hyderabad, Kolkata andAhmedabad.
ThisFund has been raised from high net worth individuals, non-resident Indians andfamily offices/corporates. The Fund is set up as an alternative investment fund(AIF Category II).
MO Alts is the alternative investments platform of MotilalOswal Financial ServicesLimited. The cumulative AUM under MO Alts is more than USD 2 billionacross growth stage private equity and real estate verticals.
Mr. Vishal Tulsyan, MD & CEO, MO Alts said “This marks thelargest and the fastest first close for our realestate funds to date. This successful fund raise amidsta bullish equity market underscores the unwaveringconfidence our investors have placed in our capabilities. We are very optimisticabout the real estate market as we foresee a period of robust growth ahead.Moving forward, we are committed to strengthening our position as a leadingcapital provider for real estatesector by capitalizing on a myriadof opportunities in the years to come.”
Mr. Saurabh Rathi, Co-Head(Real Estate) at MO Alts said “The Indian realestate market has exhibited remarkable resilience and growth in recent years.The residential sector has witnessed decadal high demand while the officemarket has demonstrated strong absorption nearing the pre-pandemic peaks. With sectoralindicators projecting continued momentum, the demand for early-stage capital has become increasingly pronounced. We are dedicated to addressing this need byleveraging our strongtrack record, conservativeunderwriting practices and robust risk management framework.”
Mr. Anand Lakhotia,Co-Head (Real Estate) at MO Alts said “We are immensely grateful to our investors, including those who have previouslyinvested in our funds, for their continued trust in our investment expertise. With tightening restrictions on Banks and NBFCs regardingcapital usage and a promisingoutlook for the real estate market,we are strategically positioned to capitalize on emerging opportunities. The deal flow looksvery promising as we have already built a robust pipeline of investmentopportunities across major cities at attractive risk-adjusted yields which areat various stages of evaluation.”