Karthik Athreya, Director, Sundaram Alternates
Sundaram Alternates( SA), the alternative financial investment arm of Sundaram Finance Group, has actually revealed the effective close of its 2nd property credit fund, Sundaram Alternative Opportunities Series– High Yield Secured RE Debt Fund II (SA RE Credit Fund II)
The fund provided a gross financier IRR of 17 percent after leaving its portfolio financial investments in its roughly 435 crore SA RE Credit Fund II.
Disciplined credit method yields zero capital losses
SA RE Credit Fund IIinvested 100 percent of its portfolio in totally protected, high-yielding debentures provided by Indian realty designers. The fund’s technique concentrated on tasks in essential South Indian micro-markets.
“The fund pursued an extremely disciplined credit method with a varied capital allowance, a risk-adjusted method to underwriting, de-risked brownfield jobs backed by constant sponsor dedications of over 15 percent, and providing an absolutely no capital losses performance history even through difficult market cycles in between 2019 and 2023, consisting of the Covid duration,” the business stated in a declaration.
Platform finishes 38 complete exits, 10 partial exits
The effective exit marks another turning point for SA’s flagship realty credit method. The platform has actually tape-recorded 38 total exits and over 10 partial exits, aggregating to over 2,600 crore over the previous 8 years.
In this duration, the platform has actually constructed a strong performance history of over 70 offers through 4 realty credit funds throughout sector cycles, in spite of materially unfavorable financial occasions that consist of 2 Covid waves, the NBFC crisis, and so on.
The effective closure and exit of SA RE Credit Fund II highlights our dedication to providing strong risk-adjusted returns while prioritising capital security. Our disciplined financial investment method and distinct underwriting method have actually allowed financiers to attain constant, quarterly money yields even throughout challenging market conditions,” Karthik Athreya, Director at Sundaram Alternates, stated.
With increasing institutionalisation of personal credit, intriguing chances and a growing hunger for risk-adjusted returns from Indian financiers, our company believe this is a specifying years for personal funding in India, he included.
The platform’s cumulative capital raise genuine estate now surpasses 2,600 crore throughout 4 devoted funds. To date, SA has actually released over 4,200 crore throughout 74 handle contracted IRRs of 19%. In general, the wider alternative financial investments platform at Sundaram handles more than 7,000 crore in cumulative AUM throughout personal credit, liquid set earnings and bespoke equity techniques.
Released on October 6, 2025
