Sundaram Alternates Surpasses ₹1,000 Crore Milestone in Fundraising

Sundaram Alternates (SA), part of the Sundaram Finance Group, has achieved a significant milestone by raising over ₹1,000 crore for its Sundaram Alternative Opportunities Series – High Yield Secured Real Estate Fund IV. This marks the fourth successful fund under its flagship real estate strategy, which boasts a track record of nearly 60 deals and no capital losses. The SA RE Credit Fund IV is focused on South Indian micro-markets, partnering with established developers known for timely delivery in the mid-market residential segment.

With a proprietary senior-secured underwriting approach, SA emphasizes capital protection while ensuring consistent quarterly returns. Today, 70% of the fund is invested and yields impressive internal rates of return of nearly 19%.The range of investors who are attracted by the fund is diverse, from institutions and family offices to corporate treasuries and high-net-worth individuals. Real estate has been gaining popularity as an asset class, and the consistency with which SA has turned up even through trying times such as the 2018 NBFC crisis or the COVID-19 pandemic has provided an even deeper layer of investor confidence in it.

The cumulative commitment to capital preservation coupled with superior risk-adjusted returns has served SA well.Sundaram Alternates’ Karthik Athreya, Director and Head of Strategy Private Credit said that they have weathered the challenges coming from the markets. “Our focus has always been on secured investments that generate consistent returns while protecting investors’ capital. Over the years, we’ve deployed over ₹3,200 crore into senior credit at 18-20% asset-level returns, providing a strong buffer for mid-teen net returns to investors. It’s heartening to see the majority of our investors return, recognizing our cautious, risk-mitigated approach,” he said.

Backed by the legacy of Sundaram Finance, a trusted AAA-rated NBFC with over 70 years of experience, Sundaram Alternates continues to enhance investor trust. The firm’s private credit strategy aims to build resilient and diversified portfolios, seizing opportunities that balance risk and reward to deliver attractive returns.