Sundaram Alternates (‘SA’), a USD 850 million alternate assets manager and a Sundaram Finance Group company, recently crossed a milestone mark of INR 1,000 crores in fundraise in its Sundaram Alternative Opportunities Series – High Yield Secured Real Estate Fund IV. This marks the fourth successful fund in SA’s flagship real estate strategy, following a track record of ~60 deals and zero invested capital losses to date.
The SA RE Credit Fund IV will focus primarily on South Indian micro markets with established developers who have strong execution strengths of timely deliveries in the mid-market residential segment. Over the last 7 years, SA has designed its own proprietary senior-secured underwriting methodology that prioritises capital protection while delivering consistent quarterly returns to its investors. SA RE Credit Fund IV is 70% deployed in a portfolio that is yielding close to 19% IRRs.
The fund has attracted a diverse pool of investors across institutions, family offices, corporate treasuries and high-net-worth individuals given the strong emergence of real estate as an asset class, SA’s strong track record and consistent investor returns despite significant adverse market events such as the 2018 NBFC crisis, 2 Covid waves, and other market events. This commitment bears testimony to SA’s relentless focus on capital preservation, quarterly cash yields and superior risk-adjusted returns from its private credit strategies.
Commenting on the development Mr. Karthik Athreya, Director & Head of Strategy – Private Credit at Sundaram Alternates, said,”The progress to date of SA’s fourth real estate credit fund highlights our strong execution abilities even amidst challenging market conditions. Our focus has always been on making secured investments that generate consistent returns while protecting our investors’ capital. Over the years, SA has deployed over ₹3,200 crores into senior credit at 18-20% asset level returns, which provides a strong buffer to deliver consistent mid-teen net returns to investors. I’m proud to say that a majority of our LPs are repeat investors who have appreciated Sundaram’s risk-mitigated and cautious approach to underwriting and prioritisation on capital safety and risk management. SA’s goal on the private credit business is to create diverse secured credit portfolios that are resilient in the face of macro and micro headwinds while being able to tap into interesting risk-reward opportunities that deliver attractive returns”.
Sundaram Finance, the flagship parent company of the Sundaram group, is a trusted brand with over seven decades of experience and a AAA-rated deposit-taking NBFC. The group’s legacy and commitment to delivering consistent returns further enhance investor confidence in Sundaram Alternates’ offerings.
Capital Commitments: Over ₹1,000 crores raised, marking a significant milestone in Sundaram Alternates’ growth.
Track Record: Close to 60 successful transactions, with a flawless record of no capital losses.
Investment Focus: Secured debt financing for real estate developers in key South Indian markets. Target Returns: Gross deal returns of 18-20% on a senior secured basis.
Portfolio Deployment: 70% of the fund’s commitments have already been deployed, generating close to 19% in returns.
Experienced Team: Leveraging the expertise of Sundaram Alternates and the strong support of the Sundaram Group.
Proven Success: Over ₹3,200 crores deployed over the past seven years with consistent returns of 18-20%.
About Sundaram Alternate Assets
Sundaram Alternate Assets Ltd. (SAAL), an established player in the AIF and PMS space, is a 100% subsidiary of Sundaram Asset Management Company Limited (SAMC) and Sundaram Finance Limited. Sundaram Alternates caters to the investment needs of high net-worth individuals (HNIs) with offerings across Portfolio Management Services (PMS) and Alternative Investment Funds (AIF). SAMC is a wholly owned subsidiary of Sundaram Finance Limited, a leading non-banking finance company in India. The fund management team at Sundaram Alternates brings rich experience in both Portfolio Management Services (PMS) and Alternative Investment Funds (AIF), creating wealth for investors across diverse asset classes and investment strategies. Strategies are built on new-age industry practices, sound operating models, data-backed research, and transparency – to give your wealth the edge it needs.
