Sundaram Alternates ESG Realty Fund Bags ₹1,000 Cr

BANKINGFINANCE

Overview

Sundaram Alternates has secured ₹1,000 crore in commitments for its ESG-aligned SA Real Estate Credit Fund V. The fund, targeting ₹1,500-2,000 crore, will focus on senior secured lending to cash-generating residential projects, prioritizing capital protection. This milestone reflects rising investor confidence in sustainable private credit and India's expanding $1 trillion real estate sector.

Sundaram Alternates Secures ₹1,000 Crore for ESG Realty Fund

Sundaram Alternates, the alternative investment arm of Sundaram Finance Group, announced it has secured ₹1,000 crore in capital commitments for its ESG-aligned SA Real Estate Credit Fund V. The fundraise attracted a diverse investor base, including insurance companies, family offices, corporate treasuries, and ultra-high-net-worth individuals.

The fund's target corpus is between ₹1,500 crore and ₹2,000 crore. Capital commitments began in October, with the fund expected to reach its final close by March. Sundaram Finance Group has also provided a sponsor commitment.

"As the fundraise progresses toward its final close, our focus remains on disciplined capital deployment, capital protection, and building long-term investor relationships," said Karthik Athreya, Managing Director, Sundaram Alternates.

Credit Strategy Prioritizes Protection

The fund's credit strategy will concentrate on senior secured, amortising lending to brownfield, cash-generating residential projects. Sundaram Alternates emphasized capital protection and downside risk management through conservative loan-to-value structures and collateral coverage.

Sundaram Alternates has a track record in this segment, having raised over ₹3,800 crore across five previous real estate credit funds, delivering internal rates of return in the range of 18% to 19%.

Disclaimer:This content is for educational and informational purposes only and does not constitute investment, financial, or trading advice, nor a recommendation to buy or sell any securities. Readers should consult a SEBI-registered advisor before making investment decisions, as markets involve risk and past performance does not guarantee future results. The publisher and authors accept no liability for any losses. Some content may be AI-generated and may contain errors; accuracy and completeness are not guaranteed. Views expressed do not reflect the publication’s editorial stance.