Sundaram Alternates Targets ₹2,000 Crore Real Estate Fund by March 2024
Sundaram Alternates plans to raise up to ₹2,000 crore through its SA Real Estate Credit Fund V by March, having already secured ₹1,000 crore in three months. The ESG-aligned fund targets residential sector credit opportunities and has attracted diverse investors including insurance companies and family offices. Since 2017, the company has raised over ₹3,800 crore across five funds, delivering 18-19% returns with zero capital loss record.
*this image is generated using AI for illustrative purposes only.
Sundaram Alternates has announced ambitious fundraising plans for its real estate investment platform, targeting up to ₹2,000 crore by March through its latest credit fund initiative. The alternative investment arm of the Sundaram Finance group has already made significant progress toward this goal, securing substantial investor commitments in recent months.
Fund Progress and Timeline
The company has demonstrated strong momentum in its fundraising efforts, having raised ₹1,000 crore in the SA Real Estate Credit Fund V over the last three months. The fundraising strategy includes securing an additional ₹500-1,000 crore by March to reach the target corpus.
| Parameter: | Details |
|---|---|
| Target Fund Size: | Up to ₹2,000 crore |
| Amount Raised: | ₹1,000 crore (last 3 months) |
| Remaining Target: | ₹500-1,000 crore |
| Timeline: | By March 2024 |
| Fund Name: | SA Real Estate Credit Fund V |
"As the fundraise progresses toward its final close, our focus remains on disciplined capital deployment, capital protection, and building long-term investor relationships," stated Karthik Athreya, Managing Director of Sundaram Alternates.
ESG-Aligned Investment Strategy
Sundaram Alternates has positioned this offering as the first ESG-aligned fund in the realty sector, reflecting growing investor interest in sustainable investment options. The fund has successfully attracted diverse investor participation including:
- Insurance companies
- Family offices
- Corporate treasuries
- Ultra-high-net-worth investors
- Sponsor commitment from the Sundaram Finance group
The fund will focus on performing credit opportunities specifically within the residential sector, emphasizing capital protection and downside risk management through conservative loan-to-value structures and comprehensive collateral coverage.
Track Record and Performance
Sundaram Alternates has established a strong performance history in real estate credit investments since beginning operations in 2017. The company's track record demonstrates consistent returns and risk management capabilities across various market conditions.
| Performance Metric: | Achievement |
|---|---|
| Total Funds Raised: | Over ₹3,800 crore |
| Number of Funds: | Five real estate credit funds |
| Internal Rate of Returns: | 18-19% |
| Capital Loss Record: | Zero |
| Operating Period: | Since 2017 |
The company has maintained its zero capital loss record despite navigating significant market challenges including NBFC liquidity stress, RERA and GST implementation, and the Covid-19 pandemic. This performance history supports investor confidence in the current fundraising initiative and demonstrates the firm's ability to protect capital while delivering competitive returns in the real estate credit space.
20
