Sundaram Alternates Real Estate Credit Fund IV Raises ₹1,000 Crore

New Delhi, January 15, 2025: Alternate assets manager Sundaram Alternates, a $850-million company, has crossed the milestone of ₹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 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.

Commenting on the development 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 per cent 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 grouphas over seven decades of experience and is an AAA-rated deposit-taking NBFC.