News Update

Motilal Oswal Alternates raises 850 cr from 14 exits this fiscal year and will soon start a new fund

• ByStartupStory     |    January 18, 2023

Following an investment of a comparable amount in real estate projects during the first nine months of 2022–2023, Motilal Oswal Alternate Investment Advisors will launch a new real estate fund with a corpus of Rs 2,000 crore by the end of March this year. 

The asset management also completed 14 exits totaling 850 crore between April and December, with an average internal rate of return of 20.5%. 

Real estate assets of $6,500 crore are being managed by Motilal Oswal Financial Services’ alternative investment division, which also invests in sector-neutral funds and real estate. It has collectively invested in 149 ventures, exiting 55 of them profitably.

The investment advisor oversees five real estate funds, two of which continue to be used today and have a combined corpus of around 2,400 crore. It has already made 45 investments, and it will soon make another 500 investments using the available capital.

The asset manager made investments in the development projects of companies including Shapoorji Pallonji, Casagrand Group, Arihant Group, M3M-Smartworld, Marathon Group, Puravankara Group, Alliance Group, and Pacifica Group last year. Pune, Chennai, Hyderabad, Mumbai, Bengaluru, and Delhi-National Capital Region are among the cities where these initiatives will soon begin.

Although it has engaged in some commercial projects as well, the majority of the projects are residential ones in the inexpensive and middle-income segments.

According to Sharad Mittal, CEO of the real estate funds, robust home sales over the previous two years were a result of rising affordability and a preference for homeownership. He said, “While some headwinds may act as momentary disruptors, the real estate sector, which has remained robust during the past two years, is expected to carry forward the growth trends into 2023.”

The deal flow in the real estate sector, he claimed, has improved during the previous two years, but the fund would still make careful investments in line with its guiding principles.

 

 

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