New Delhi, May 21 -- Sundaram Alternates (SA), the alternative investment arm of the Sundaram Finance Group, has hit the final close of its SA Real Estate Credit Fund V at $259 million (around Rs 2,500 crore), raising the corpus in less than seven months since its launch in October last year, the investment firm said in a statement.
The fund has already committed over 90% of its capital across various deals.
The final close surpasses the fund's initial target corpus of Rs 1,500 crore, underscoring strong investor demand for Sundaram Alternates' performing real estate credit strategy.
In January, the company had announced a fundraising milestone of Rs 1,000 crore and said it expected to close the fund in the Rs 1,500-2,000 crore range.
Fund V received commitments from institutional and high-net-worth investors, including insurance companies, family offices, corporate treasuries, and ultra-high-net-worth individuals (UHNIs). Sundaram Finance Group, the sponsor of the firm, also contributed capital to the fund.
"Reaching a final close of Rs 2,500 crore in less than seven months is a strong validation of the platform we have built over nearly a decade," said Karthik Athreya, managing director of Sundaram Alternates. "Investors have consistently backed our discipline across underwriting, risk management, and with a high degree of consistency, and this outcome reflects that trust."
Athreya added that with Fund V nearly fully deployed this quarter, the firm's focus has shifted to delivering returns while expanding its alternatives platform through a host of innovative and risk-adjusted products currently being launched and developed.
According to the statement, Fund V follows a performing credit strategy focussed on senior secured, amortising and cash-generating deals in brownfield residential projects. The approach prioritizes capital protection and downside risk management through conservative loan-to-value structures and strong collateral coverage.
Sundaram Alternates has now raised over Rs 5,500 crore across its real estate credit platform. The platform has delivered internal rates of return (IRRs) of 18-19%, maintained a zero-capital-loss record since inception in 2017, and navigated multiple market cycles, including the NBFC liquidity crisis, the implementation of RERA and GST, the COVID-19 pandemic, and recent inflationary pressures.
With Fund V fully subscribed, Sundaram Alternates is developing the next set of offerings across its alternatives platform, including new mandates under its expanded franchise.
Sundaram Alternates is a subsidiary of Sundaram Asset Management Co Ltd, the mutual fund arm of Sundaram Finance Ltd. The firm caters to high-net-worth individuals (HNIs), family offices and institutional investors through offerings spanning alternate investment funds (AIFs), portfolio management services (PMS), and customized managed accounts across private credit, listed equities, and liquid fixed-income strategies.
The firm manages more than Rs 10,000 crore in assets across private credit, liquid fixed income and bespoke portfolios.
Published by HT Digital Content Services with permission from VC Circle.