Homegrown SME-focussed investment firm Motilal Oswal Private Equity Investment Advisors (MOPE) is readying to launch its ₹1,500-crore ($225 million) fourth fund, its largest realty-focused vehicle to date, by the end of this month or early August. The launch would immediately follow the closure of its $294-million third fund – India Business Excellence Fund – by next month.

MOPE, a subsidiary of diversified financial services group Motilal Oswal Financial Services (MOFSL), would use the proceeds from the fourth real estate fund – India Real Estate Fund IV (IREF IV) – to invest in real estate ventures across metros. The company would mainly invest in projects of reputed developers with proven track records, sources close to the development said.

The proceeds for IREF IV would be raised from high networth individuals (HNIs) and ultra HNIs in India, they added.

MOPE has a total of about ₹4,700 crore of assets under management (AUM) under its India Business Excellence Fund, and provides capital in the range of ₹100-300 crore to mid-market companies. Through a separate vertical – Motilal Oswal Real Estate (MORE) – it manages another ₹2,100 crore under three real estate funds.

Its first real estate fund – IREF I – saw full and partial exits from seven projects, translating into about 109 per cent capital returns to investors, while IREF II was fully-deployed across 13 investments. IREF II had made four complete exits, with an average Internal Rate of Return (IRR) of 26 per cent, and returned about 42 per cent capital to investors.

Earlier, IREF III announced its final close at ₹1,030 crore, of which about 70 per cent is committed to 12 investments. In the last decade, MOPE invested in more than 25 small- and mid-sized businesses across Tier II, III and IV cities from its three growth capital funds.

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