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Sundaram Alternates has launched its first corporate credit fund - The Emerging Corporate Credit Opportunities Fund - Series I.
The Category II AIF will invest via high yielding debentures and mezzanine securities in a portfolio of companies across MSME, SME, fintech, manufacturing and services.
In a press release, the company said, “Many companies in these sectors find it relatively cumbersome to raise capital from banks and the equity markets. The fund will try to benefit from this opportunity by being a differentiator in the marketplace through the creation of unique fund and deal structures with the backing of Sundaram Finance Group, which will aid the generation of consistent cash flows and risk-adjusted portfolio returns in the mid to high teens for its investors.”
The fund will primarily focus on South Indian markets. It is open for subscription to domestic and international investors.