Fund exits
Motilal Oswal's IREF IV realty fund exits all 37 investments with 20.4% IRR
Motilal Oswal Alternates said on 8 October 2026 that its India Realty Excellence Fund IV (IREF IV) has fully exited all 37 of its investments, for a portfolio internal rate of return (IRR) of 20.4%. Radiance Realty Developers, a Chennai-based developer, is among the developers named in coverage of the fund, and the fund put Rs 83 crore into three of its Chennai projects in 2019.
| Announcement | Statement issued Thursday, 8 October 2026 |
|---|---|
| Fund | India Realty Excellence Fund IV (IREF IV), managed by Motilal Oswal Alternates; size reported as ₹1,155 crore |
| Investments | 37 investments, all now exited; the fund is being wound up |
| Portfolio IRR | 20.4%, which the firm said was in line with its return objective |
| Geography | Seven cities in India; the coverage reviewed does not name them |
| Fund focus | Structured capital to established developers at the pre-approval stage |
| Portfolio mix at 2020 final close | About 80% residential and 20% commercial; average deal size about Rs 75 crore |
| Radiance Realty link | Rs 83 crore of mezzanine debt in three Chennai mid-income projects, invested in 2019 through IREF III and IREF IV |
| Motilal Oswal real estate platform (as of October 2026) | Over ₹11,000 crore of cumulative real estate AUM across six funds; more than 200 investments and over 150 exits |
What happened
On Thursday, 8 October 2026, Motilal Oswal Alternates, the alternative investments arm of Motilal Oswal Group, said that its India Realty Excellence Fund IV (IREF IV) had fully exited all 37 investments in its portfolio. The firm reported a portfolio internal rate of return of 20.4% and said the fund is now closed. A business newspaper report on the statement, dated 8 October 2026, gave the same figures.
The firm said the fund’s return was in line with its return objective. No further action on the fund has been announced as of 14 October 2026.
The fund: size, timeline and mandate
The fund is reported at ₹1,155 crore in the 2026 statement. Coverage gives two different start dates. Fundraising was reported in September 2018, when the fund reached a first close with commitments of Rs 575 crore. A final close was reported in April 2020 at Rs 1,150 crore. The 2026 statement uses the ₹1,155 crore figure, so the final size differs by Rs 5 crore between the 2020 and 2026 reports.
When the fund was launched in 2018, its stated mandate was early-stage structured equity and structured debt investments with established developers. The plan was 12 to 15 transactions of Rs 80 crore to Rs 150 crore each.
At the 2020 final close, the company said it had already committed about Rs 550 crore to nine projects from this fund, with an average investment of about Rs 75 crore. Around 80% of the portfolio was residential and 20% commercial. The company said it targeted a return of upwards of 20%.
Portfolio outcome and the firm’s account
Saurabh Rathi, Managing Director and Co-Head of Real Estate at MO Alternates, said: “Diversification across 37 investments and seven cities meant that no single project or market could define the Fund’s outcome.”
The statement pointed to several headwinds over the fund’s life: the Covid-19 pandemic, rising interest rates and input costs, and geopolitical tensions and conflicts in the Middle East. It named residential sales and collections, funding availability, construction costs and project execution timelines as the pressure points. It said the fund’s response was to focus on capital protection, disciplined underwriting and active asset management.
As of October 2026, the firm said three of its six real estate funds have been fully exited, and two others are making payouts and moving toward full exit. The sixth fund, IREF VI, is in its investment phase.
Radiance Realty’s link to the fund
Radiance Realty is one of the developers named in coverage of this fund. The coverage reviewed does not give a Radiance-specific amount, project or exit detail from the 8 October 2026 statement.
The earlier link is documented. In March 2019, Motilal Oswal Real Estate invested Rs 83 crore as mezzanine debt in three projects that Radiance Group was developing in Chennai. The money funded land acquisition for three mid-income housing projects. It came through two funds, IREF III and IREF IV, not a single fund.
Radiance Realty Developers India Ltd is headquartered in Chennai, at Radiance Towers, Guindy. The company’s own materials describe more than 44 projects and over 7 million sq ft delivered, across Chennai, Bengaluru, Coimbatore and Madurai. These are company claims. A CARE Ratings press release from March 2024 said the company is engaged mainly in residential projects in Chennai and has recently diversified into Bengaluru and Coimbatore. CARE flagged regional concentration risk, which it said is partly offset by the company’s brand standing in the Chennai market.
Searches of news archives and regulator databases turned up no insolvency case, police matter or TNRERA penalty against Radiance Realty as of October 2026.
What it means for buyers, investors and the market
Home buyers: The statement does not link the exit to any change in project delivery, pricing or buyer terms. No home-buyer impact has been named by a source. Buyers of any specific project should check that project’s own RERA registration and status directly.
Investors: The 20.4% figure is a portfolio-level return for the fund as a whole. It does not show how any single project, including the Radiance projects, performed. The firm’s own account credits diversification across cities and projects for the outcome.
Market: The statement describes a period of pressure on residential sales, collections, funding, construction costs and timelines. It does not give market-wide sales or price data, and this article does not add any.
What comes next
IREF IV is now closed, and no further action on the fund has been announced. The firm’s remaining funds include IREF VI, which is in its investment phase. No dated next steps for Radiance Realty linked to this exit have been announced.
Frequently asked questions
What did Motilal Oswal’s IREF IV fund announce?
On 8 October 2026, Motilal Oswal Alternates said the fund had fully exited all 37 of its investments, with a portfolio IRR of 20.4%, and that the fund is now closed.
How big was IREF IV?
The 2026 statement reports the fund at ₹1,155 crore. Earlier reports gave a 2018 first close of Rs 575 crore and a 2020 final close of Rs 1,150 crore.
Did the fund invest in Radiance Realty?
Yes. In March 2019, Motilal Oswal Real Estate invested Rs 83 crore as mezzanine debt in three Radiance projects in Chennai, through IREF III and IREF IV. The 2026 coverage names Radiance as one of the developers, but gives no Radiance-specific exit detail.
Which cities did the fund invest in?
The fund invested across seven cities. The coverage reviewed does not name them.
Does this exit affect home buyers?
No effect on buyers has been reported. The exit is a fund-level event, and the statement does not describe changes to any project’s delivery or terms.