A major portion of the capital of the fund, Indian Realty Excellence Fund VI (IREF-VI), has been raised from family offices and Indian high networth individuals, indicating continued domestic interest in real estate credit.
The fund has also secured commitments from offshore investors through the GIFT City platform, which indicates global investors’ rising appetite for Indian real estate.
“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,” said Saurabh Rathi, MD & Co-Head (Real Estate), MO Alternates.
He believes that with regulatory norms tightening for traditional lenders, alternative credit platforms are stepping in to bridge the funding gap with customised solutions for developers. The current environment presents significant headroom for calibrated growth.
“This fundraise marks a 65% growth compared to previous fund and this is also the fastest domestic capital raise in India’s real estate credit space. The fund’s portfolio is primarily focused on mid-income residential developments designed to cater to rising demand from urban homebuyers. The fund has already recorded its first exit with an internal rate of return (IRR) of 20.25%,” said Anand Lakhotia, MD & Co-Head (Real Estate) at MO Alternates.The fund has committed 75% of the corpus across 15 diverse real estate projects spanning Mumbai, Pune, Chennai, Bangalore, Hyderabad, and Kolkata. MO Alternates has partnered with developers including Ajmera Realty, Runwal Enterprises, Ambuja Neotia Group, Casagrand Group, Radiance Realty, Mantra Properties, Assetz Group, Akshar Group, Bhagwati Group, and ASBL Group.Since the start of 2024, MO Alternates, through its funds and co-investments, has committed over Rs 2,500 crore across more than 35 real estate projects and achieved full exits from over 30 investments, with total divestments exceeding Rs 2,200 crore.
The platform’s cumulative assets under management (AUM) in real estate are over Rs 10,000 crore across six real estate funds and co-investments. The platform has made over 180 investments and secured 110 complete exits. Overall, the alternative investments platform manages more than $2 billion in cumulative AUM across real estate and private equity.
