New Delhi, Oct. 6 -- Sundaram Alternates, the alternative investment arm of Sundaram Finance Group, said Monday it has closed its second real-estate credit fund with a gross internal rate of return (IRR) of 17%.
The firm said in a statement that the SA RE Credit Fund II, which had raised about Rs 435 crore, invested in secured, high-yielding debentures issued by Indian real estate developers and focused on South Indian micro markets.
According to the statement, it pursued a credit strategy with diverse capital allocation, a risk-adjusted approach to underwriting and de-risking of brownfield projects backed by consistent sponsor commitments of over 15%.
"With increasing institutionalisation of private credit, interesting opportunities and a growing appetite for risk-adjusted returns from Indian investors, we believe this is a defining decade for private financing in India-and our goal is to position Sundaram Alternates as a dependable and trusted partner to investors as they allocate to these asset classes," said Karthik Athreya, director, Sundaram Alternates.
The firm has cumulatively raised over Rs 2,600 crore across four dedicated funds. It has deployed over Rs 4,200 crore across 74 deals with contracted IRRs of 19%. It has recorded 38 complete exits and over 10 partial exits aggregating to over Rs 2,600 crore over the past eight years.
Overall, the broader alternative investments platform at Sundaram manages more than Rs 7,000 crore in cumulative assets under management across private credit, liquid fixed income and bespoke equity strategies.
Published by HT Digital Content Services with permission from VC Circle.