Latest news with #VishalTulsyan
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Business Standard
22-07-2025
- 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.
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Business Standard
23-06-2025
- Business
- Business Standard
Motilal Oswal Alternates exits all investments from its second realty fund
Motilal Oswal Alternates (MO Alternates), the alternative investments arm of Motilal Oswal Group, has announced the closure of its second real estate fund—India Realty Excellence Fund II (IREF II)—following the exit of all 14 investments with a gross internal rate of return (IRR) of 18.3 per cent. IREF II, a Rs 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. IREF II operated through a period marked by multiple disruptions and reforms such as demonetisation, the introduction of the Real Estate (Regulation and Development) Act (RERA) and the Goods and Services Tax (GST), the non-banking financial company (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 noted. Over its lifecycle, the fund partnered with Kolte Patil Developers, Casagrand Group, Shriram Properties, among others. Vishal Tulsyan, co-founder and executive chairman, MO Alternates, said, '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.' MO Alternates' cumulative assets under management (AUM) for real estate exceed 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. The firm will continue to deploy capital through subsequent funds in the IREF series and co-investments focused on real estate.
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.
Mint
16-06-2025
- Business
- Mint
IFC invests $60 million in Motilal Oswal Alternates's $750 million fifth fund
The International Finance Corporation has invested $60 million in Motilal Oswal Alternates's fifth fund in a deal that will allow it to co-invest in the Indian private equity firm's portfolio companies. This is the World Bank Group company's third and largest equity investment in an MO Alternates fund. The India Business Excellence Fund V G managed by MO Alternates focuses on mid-market companies in the consumer, financial services, life sciences, and manufacturing sectors. IFC's investment in it comes attached with a $60 million co-investment envelope that will allow it to invest in companies alongside MO Alternates's latest fund. Equity co-investment enables banks like IFC to invest in future investments made by a venture capital or private equity firm without paying high fees. 'IFC's investment aims to leverage private capital and solutions to boost job creation, promote inclusive and sustainable growth, and support India's transition to a higher middle-income country,' said Mohamed Gouled, IFC's vice president of industries, in a statement. The India Business Excellence Fund V G fund has a target corpus of $750 million, with a greenshoe option for an additional $150 million. Over the course of the fund's lifecycle, MO Alternates plans to invest in 12-16 mid-market companies. It will target companies working not just in India's big cities but also in low-income states as well as tier-2 and tier-3 cities. 'IFC's investment in the fund sends a powerful signal to other investors, especially institutional investors, to invest in India,' said Vishal Tulsyan, managing director and chief executive officer of MO Alternates, in a statement. He added that the investment would act as encouragement to local fund managers to raise funds for investments in India's underserved regions. IFC had invested $25 million in MO Alternates's second fund, which had a corpus of $115 million, and $35 million in its fourth fund (sized at $550 million). Among the PE firm's notable investments are consumer lending startup Kreditbee, which was last valued at $700 million; non-banking financial company SK Finance, in which MO Alternates invested ₹ 415 crore for a minority stake; and health insurance company Niva Bupa Insurance. In 2021, MO Alternates sold its entire stake of about 5% in India Energy Exchange for ₹ 325 crore, according to VCCircle. Its other notable investment exits include listed consumer firm Mrs. Bectors Food Specialties Ltd and electronic auto components manufacturer Uno Minda Ltd (formerly known as Minda Industries). MO Alternates's ₹ 500 crore first fund, from which it has exited, delivered an internal rate of return of 26.8%, according to the company's website. Investments from domestic private equity firms in Indian companies increased from 9% in 2012-2014 to 11% in 2022-2024, according to McKinsey & Co. The consulting firm attributed this to three factors: increasing number of domestic general partners (who manage a fund), larger fund-raising and fund sizes, as well as interest from limited partners (which invest in PE and venture capital funds) in India-specific portfolios as they look to diversify their investments.
