Sundaram Alternates goes past Rs 1,000 cr in capital commitments

CHENNAI: Sundaram Alternates (SA), a $850 million alternate assets manager and a Sundaram Finance Group company, recently crossed a milestone mark of Rs 1,000 crore 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 over 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 per cent deployed in a portfolio that is yielding close to 19 per cent 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.

Karthik Athreya, director & head of strategy - private credit, 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 Rs 3,200 crores into senior credit at 18-20 per cent asset level returns, which provides a strong buffer to deliver consistent mid-teen net returns to investors.”