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Sundaram Alternates has raised a milestone mark of Rs.1,000 crore of commitments in its Sundaram Alternative Opportunities Series – High Yield Secured Real Estate Fund IV.
This is the fourth successful fundraiser for the AMC in real estate strategy.
The fund will focus primarily on South Indian micro markets with established developers who have strong execution strengths of timely deliveries in the mid-market residential segment.
In a press release, the company said, “Over the last 7 years, Sundaram Alternates has designed its own proprietary senior-secured underwriting methodology that prioritises capital protection while delivering consistent quarterly returns to its investors. Sundaram Alternates RE Credit Fund IV is 70% deployed in a portfolio that is yielding close to 19% IRRs.”
Karthik Athreya, Director & Head of Strategy - Private Credit at Sundaram Alternates, said, "The progress to date of SA’s fourth real estate credit fund highlights our strong execution abilities even amidst challenging market conditions. Our focus has always been on making secured investments that generate consistent returns while protecting our investors’ capital. Over the years, Sundaram Alternates has deployed over Rs.3,200 crores into senior credit at 18-20% asset level returns, which provides a strong buffer to deliver consistent mid-teen net returns to investors. I’m proud to say that a majority of our LPs are repeat investors who have appreciated Sundaram’s risk-mitigated and cautious approach to underwriting and prioritisation on capital safety and risk management. Our goal on the private credit business is to create diverse secured credit portfolios that are resilient in the face of macro and micro headwinds while being able to tap into interesting risk-reward opportunities that deliver attractive returns”.