A standout performance in Indian alternative investments: Motilal Oswal Alternates has fully exited its fourth real estate fund, India Realty Excellence Fund IV (IREF IV), after exiting all 37 investments in the portfolio — with the fund delivering a portfolio internal rate of return (IRR) of 20.4%, announced October 8, 2026.
The ₹1,155 crore fund, a 2020 vintage, provided structured capital to established developers at the pre-approval stage across seven cities. Its portfolio included developers such as Casagrand, Puravankara, Kolte Patil Developers, Urbanrise, Phoenix, Rajapushpa, Ashwin Sheth and Radiance Realty.
The fund navigated the COVID-19 pandemic, higher interest rates, rising input costs and geopolitical disruptions — headwinds that hit the real estate sector through weaker sales, funding constraints and project delays — and still delivered over 20% IRR.
IREF IV's full exit follows IREF II's closure in April 2025 at an 18.3% IRR. Three of MO Alternates' six real estate funds are now fully exited, while the latest fund, IREF VI, is in its investment phase, deploying across select residential projects. Across its real estate platform, the firm has funded 100+ million square feet of development, with cumulative AUM above ₹11,000 crore, 200+ investments and 150+ complete exits.
Why it matters for founders
Consistent 18–20%+ IRRs across consecutive vintages do more than enrich investors — they keep the capital cycle spinning. Successful exits recycle confidence (and money) back into Indian alternatives, including the VC and startup ecosystem. For founders, the meta-signal is simple: India's private capital markets are maturing fast enough to return institutional-grade performance through genuine crises.