Latest news with #MotilalOswalGroup
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Business Standard
3 hours ago
- Business
- Business Standard
Motilal Oswal Alternates raises ₹2,000 cr for realty fund, clocks 20% IRR
Motilal Oswal Alternates (MO Alternates), the alternative investments arm of Motilal Oswal Group, on Tuesday announced the final close of its sixth real estate fund—Indian Realty Excellence Fund VI (IREF VI)—with commitments totaling ₹2,000 crore. The raise marks a 65% jump over its predecessor and is among the fastest domestic capital raises in India's real estate credit market, the company said in a statement. The fund garnered significant interest from Indian high-net-worth individuals (HNIs), family offices, and offshore investors through the GIFT City route. Over 75% of the fund corpus is already deployed across 15 projects in key urban hubs including Mumbai, Pune, Chennai, Bengaluru, Hyderabad, and Kolkata. Developer partners include names like Ajmera Realty, Runwal Enterprises, Ambuja Neotia, Casagrand, Radiance Realty, and Assetz Group, among others. The fund is focused largely on mid-income housing, in line with robust end-user demand trends. IREF VI has already completed its first exit, delivering an internal rate of return (IRR) of 20.25%. Since the beginning of 2024, MO Alternates has committed over ₹2,500 crore across more than 35 real estate deals and has exited over 30 investments worth ₹2,200 crore. Its cumulative AUM in real estate has now crossed ₹10,000 crore, making it one of the largest homegrown platforms in the alternative real estate space. The firm has made over 180 investments to date, securing more than 110 full exits. It currently manages over $2 billion in assets across real estate and private equity strategies. The platform's cumulative assets under management (AUM) in real estate now exceed Rs 10,000 crore across six real estate funds and co-investments. 'Credit demand for land acquisition is accelerating rapidly in India, supported by strong residential appetite, rising land prices, and tightening of bank lending norms,' said Saurabh Rathi, MD & Co-Head (Real Estate), MO Alternates. 'Alternative platforms like ours are stepping in to bridge funding gaps with flexible, tailored structures.' Anand Lakhotia, MD & Co-Head (Real Estate), added, 'The overwhelming response from investors is a testament to our disciplined approach. We are committed to upholding high standards of performance and governance.' Vishal Tulsyan, Co-founder and Executive Chairman of MO Alternates, said the platform's decade-long track record and domain-led underwriting capability have helped build a 'differentiated position in India's alternative investment landscape.' As competition heats up in India's real estate debt space, MO Alternates is positioning IREF VI to back high-quality developers with clear exit visibility and strong project fundamentals.
Time of India
16 hours ago
- Business
- Time of India
Motilal Oswal Alternates raises ₹2,000 crore through its sixth real estate fund
NEW DELHI: Motilal Oswal Alternates ( MO Alternates ), the alternative investments arm of Motilal Oswal Group , has raised commitments aggregating to ₹2,000 crore through its sixth real estate fund – Indian Realty Excellence Fund VI (IREF-VI). The capital for this fund has been raised from family offices, Indian HNIs and has also received commitments from offshore investors through the GIFT City route. About 75% of the fund already committed across 15 diverse real estate projects spanning Mumbai, Pune, Chennai, Bengaluru, Hyderabad, and Kolkata. The fund's portfolio is primarily focused on mid-income residential developments. The company has already recorded its first exit from this IREF VI, with an internal rate of return (IRR) of 20.25%. Since the start of 2024, it, through its funds and co-investments, has committed over ₹2,500 crore across more than 35 real estate projects and achieved full exits from over 30 investments, with total divestments exceeding ₹2,200 crore. The platform's cumulative assets under management (AUM) in real estate now exceed ₹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.
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Business Standard
19 hours ago
- Business
- Business Standard
Motilal Oswal alternates closes ₹2,000 crore sixth real estate fund
Motilal Oswal Alternates (MOA), the alternative investment arm of Motilal Oswal Group, announced the closure of its sixth real estate fund – Indian Realty Excellence Fund VI (IREF-VI) – raising Rs 2,000 crore. The fund's portfolio is primarily focused on mid-income residential developments designed to meet the rising demand from urban homebuyers. MOA noted that a substantial share of the capital was raised from family offices and Indian high-net-worth individuals (HNIs), underscoring strong domestic conviction in the real estate credit space. Additionally, commitments from offshore investors via the GIFT City route reflect growing global confidence in the Indian real estate market. Saurabh Rathi, Managing Director & Co-Head (Real Estate) at MOA, said, 'Credit demand for land acquisition in India is accelerating rapidly, driven by a renewed appetite for residential development, rising land values, and limited availability of structured capital. With continued tightening of regulatory norms for traditional lenders, alternative credit platforms are increasingly stepping in to bridge the funding gap with tailored solutions that meet the unique needs of developers.' MOA has allocated capital across 15 real estate projects, partnering with leading developers such as Ajmera Realty, Runwal Enterprises, Ambuja Neotia Group, Casagrand Group, Radiance Realty, Mantra Properties, Assetz Group, Akshar Group, Bhagwati Group, and ASBL Group. To date, 75 per cent of the fund has been deployed across projects in key urban markets, including Mumbai, Pune, Chennai, Bengaluru, Hyderabad, and Kolkata. MOA has marked its first exit from IREF VI, delivering an internal rate of return (IRR) of 20.25 per cent. To date, it has executed over 180 investments and achieved more than 110 full exits. Since the beginning of 2024, the firm, through its funds and co-investments, has committed over Rs 2,500 crore across more than 35 real estate projects. It has also exited over 30 investments, with total divestments exceeding Rs 2,200 crore. Commenting on the fund's closure, Vishal Tulsyan, Co-founder and Executive Chairman of MOA, noted that over the past decade, the firm has established a differentiated position in the alternative asset management space by combining deep sector expertise with a robust governance framework. The platform's cumulative assets under management (AUM) in real estate exceed Rs 10,000 crore, spread across six real estate funds and multiple co-investments. Overall, the alternative investments platform manages more than $2 billion in cumulative AUM across real estate and private equity strategies.
Time of India
23-06-2025
- Business
- Time of India
MO Alternates secures Rs 1,050 crore from complete exits in second realty fund
Motilal Oswal Alternates (MO Alternates), the alternative investment arm of Motilal Oswal Group , has made exits worth over Rs 1 ,050 crore from all 14 investments under its second real estate fund, India Realty Excellence Fund II . The fund, with a corpus of Rs 489 crore, focused on providing structured capital to developers for mid-income residential projects across key urban markets in India. The capital was deployed in cities with significant housing demand and was aimed at supporting project completion and delivery timelines. With this, the fund--having invested Rs 680 crore including reinvestments--has delivered a gross internal rate of return (IRR) of 18.3%, achieving full exit in line with its stated investment philosophy and return objectives. 'The 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,' said Vishal Tulsyan, Co-founder and Executive Chairman, MO Alternates. Investments and exits were made in projects of developers such as Kolte Patil Developers , Casagrand Group, Shriram Properties , and others. The fund's cycle reflected typical timelines for structured real estate investments in the mid-income segment and the exits were achieved through repayments and project completions. Live Events '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,' said Saurabh Rathi, MD & Co-Head of real estate funds at MO Alternates. According to him, the portfolio's diversification across cities and counterparties helped it mitigate concentration risks during volatile periods. '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,' Anand Lakhotia, MD & Co-Head of real estate funds at MO Alternates. According to him, the fund navigated disruptions including demonetization, implementation of RERA and GST, the NBFC liquidity crisis, and COVID-19--which affected sales, funding, and execution--yet maintained a resilient portfolio through capital protection, disciplined underwriting, and active monitoring, enabling profitable exits from all investments. MO Alternates' cumulative assets under management for real estate stand at over Rs 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 $2 billion in cumulative AUM across real estate and private equity.
Economic Times
21-06-2025
- Business
- Economic Times
Patience is key in markets as global uncertainties test new investors: Raamdeo Agrawal
Investors may face short-term stagnation, but enduring patience often leads to stronger long-term returns—especially critical for newcomers navigating today's uncertain market. Synopsis Market veterans urge patience amid current dull phases and geopolitical tensions. While returns may dip temporarily, long-term gains often follow extended periods of low performance. New investors should embrace this cycle with discipline and perspective. I was talking to some people they were saying that market is dull. What do we do? So, I said expect little lower return and get ready for a bigger return. Longer you wait for a low return, higher will be the return on the back ended. So, this is a time for a little patience, says Raamdeo Agrawal, co-founder of Motilal Oswal Group. ADVERTISEMENT Raamdeo Agrawal: Coming back to your question, markets have been actually very resilient if you look at a very long term, 10, 15, 17 years. It has been very predictable market and in last 16 years if you see, we have seen…, 16 years means we are talking about something like post GFC which is about 2008-09. So, after that only Covid has been one of the big breakdown, otherwise market has been very-very nice and scaling up. And from 2020 post Covid, we are seeing virtual boom from 8,000-9,000 post covid correction to now 24,000-25,000, so 3x in five years, so it is a very sustained rise and it is very resilient. I mean, good thing is that not only it is rising, the corrections are very-very shallow and so that is giving the confidence. Even it has given a lot more confidence to retail investors and so, yes, journey has been very good. Raamdeo Agrawal: So, I was talking to some people they were saying that market is dull. What do we do? So, I said expect little lower return and get ready for a bigger return. Longer you wait for a low return, higher will be the return on the back ended. So, this is a time for a little patience. Today market is good, but generally all these geopolitical challenges, the patience is a lot more required whenever the external environment becomes hostile. So, right now we are going through slightly turbulent environment and patience is the key one should… I mean, lot of people have come new in the system, almost like 60-70% people are less than five years into the market. So, they would have not…, their patience will be tested for the first time, so they should be ready to provide that necessary patience, no return kind of a zone for some time and then journey again starts. So, my sincere request to all the new investors would be that they should be ready to provide that patience which is the biggest fertiliser for long-term investing. ADVERTISEMENT Raamdeo Agrawal: No, there has been…, a downdraft for the gold must be low. Of course, gold has done much better than I ever thought it will do. One is that there is no outperformance to further gold performance. If gold has done 15% or index has done 15%, I think I must have done at least 20%, so that 5% is not possible in gold. It is only possible in equities and I mean, some of the guys might have done 25%, 30% also, that is not possible in gold unless you leverage and those kind of things. So, yes, I mean, gold has outperformed my own wildest expectation and it has emerged globally also as a very important bucket of value, so the people who believe in gold, of course, it is good news to them. And right now, it looks very, what do you call, bullish, but I would not put anything onto the gold. I am pretty comfortable. One of the things which Mr Buffett said is do what you understand. So, I understand only equities. So, I am pretty good at staying with equities. ADVERTISEMENT Raamdeo Agrawal: No, I still think capital market remains a big opportunity because it is asset light and it is very scalable and the firms, particularly is the opportunity size is one. Second is the scalability within, what do you call, opportunity itself, like if you look at the global asset management companies, now they do not talk in billions, they only talk in trillions. I mean, like there are $8 trillion, $10 trillion kind of a single asset management company. So, those kind of… As our AUM grows, we will also see that 10-15% of the total AUM would be with one AMC, like in India out of 40 lakhs equities, SBI must be having almost like 7-8 lakh crores. So, those kind of consolidated positions will be there on a much more enlarged asset base. When asset base goes from 40 lakh crores to 400 lakh crores, these giants will have their due share in the larger pie also. So that kind of a capital market… and capital market is very, I would say, at least to me it looks like very smoothly compounding and scaling as a GDP of the country grows and the entire system remains intact. So, the capital market opportunity still is a pretty large opportunity and now markets have valued it also somewhat. ADVERTISEMENT When we talked about three years back, valuations were very cheap. Now, people are realising that and it is showing up in the valuation. So, less attractive opportunity than what it was three years back, but nevertheless longer term that opportunity still stays pretty intact. But going to other segments, if the oil price stabilises about $65 or $60, all the OMCs which are there at current, currently available at literally one book or one-and-a-half book, 10 times, 12 times for their size of the businesses that seems to be kind of a great opportunity and it is very early trend. But let us see, I mean the government also has to be supporting in terms of policy making but that looks to be a big trend out here. Raamdeo Agrawal: So, like the real estate looks to be…, real estate, defence, energy transitions, capital market, I mean these are few themes which are coming immediately to my mind, they will grow at more like 20%, 22%, 25%. Even banking, banking on the whole, the kind of policy we are seeing, the regulator wants higher growth, credit growth rate. So, if the 13-14%, if they go back to the trend, credit growth rate, in that case mid-sized banks, well-managed banks they will grow at about 18-20% or more than that. So, yes, I mean, there are whole lot of sectors who will definitely grow. I mean, almost like one-and-a-half times of nominal GDP growth rates. ADVERTISEMENT Raamdeo Agrawal: I mean, you have to be selective what companies you buy because it is a very-very large sector and the companies have their own limitation in terms of execution. Every city has two-three very large realty companies. But then if you look at the whole country, as you go from current $4 trillion GDP to $8 trillion or $20 trillion, the biggest game in town is going to be the real estate company. Anybody makes money anywhere in stock market or anywhere, first thing they go is and splurge in buying a better house, good house and better house. If somebody has two bedroom, he will go for three-bedroom, they will go for better locality. So, real wealth effect of stock market and of the broader economy will be reflected in realty boom and that is what we are witnessing and I mean, it is just about three-four years old kind of thing, till about Covid things were absolutely in dumps. Of course, they have come back from there and a lot of companies are listed also and a lot of companies are going to come up, but in this space we will find some unknown tier III companies or tier II companies or small companies making big splash in next 5-10 years. Raamdeo Agrawal: Yes, so that I forgot to tell, but that is one thing which is going to be across, I mean, there is going to be so many companies from the digital side. The way US market is looking today that 8-10 digital companies are kind of a dominating the entire index movement or corporate profitability movement, those movements will also come maybe after five-seven years in terms of significance. Raamdeo Agrawal: I mean, that is company wise, you have to go very company-wise, listen to the story, eat, drink, and spend time with them and understand their story. At that time you are able to figure out, at least the way I go about doing it is spend a full day with the company, at the end of the day you will be able to figure out whether it is in the price or you are way above the…, I mean, underlying value is more than the price or price is more than the value that you will be able to figure out by spending full day with the company. Raamdeo Agrawal: I am not too sure that world will go without IT services companies like Infosys, TCS, and all. But AI computing or what AI role…, I mean role of services companies will be changing for sure and they have been changing right throughout, from a complete body shopping in 90s to project implementation and now very large complex projects and now the new angle which has come up is the AI computing. So, I mean how relevant they will be in this new…, and they will be relevant, I do not have any doubts. The issue is, are their role going to go up or they will go through this stagnancy process or some kind of a contraction also. Because it budgets, I mean in my own company IT budgets are not going down, it spend is continuing and it is always short, your projects are not getting completed in time. So, it is not that just AI is coming and eating away all the services, no, it is not happening in real life. 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