Karthik Athreya, Director, Sundaram Alternates
Sundaram Alternates (SA), the alternative investment arm of Sundaram Finance Group, has announced the successful close of its second real estate credit fund, Sundaram Alternative Opportunities Series – High Yield Secured RE Debt Fund II (SA RE Credit Fund II).
The fund delivered a gross investor IRR of 17 per cent after exiting its portfolio investments in its approximately ₹435 crore SA RE Credit Fund II.
Disciplined credit strategy yields zero capital losses
SA RE Credit Fund IIinvested 100 per cent of its portfolio in fully secured, high-yielding debentures issued by Indian real estate developers. The fund’s strategy focused on projects in key South Indian micro-markets.
“The fund pursued a highly disciplined credit strategy with a diverse capital allocation, a risk-adjusted approach to underwriting, de-risked brownfield projects backed by consistent sponsor commitments of over 15 per cent, and delivering a zero capital losses track record even through challenging market cycles between 2019 and 2023, including the Covid period,” the company said in a statement.
Platform completes 38 full exits, 10 partial exits
The successful exit marks another milestone for SA’s flagship real estate credit strategy. The platform has recorded 38 complete exits and over 10 partial exits, aggregating to over ₹2,600 crore over the past eight years.
In this period, the platform has built a strong track record of over 70 deals through 4 real estate credit funds across sector cycles, despite materially adverse economic events that include 2 Covid waves, the NBFC crisis, etc.
“The successful closure and exit of SA RE Credit Fund II underscores our commitment to delivering strong risk-adjusted returns while prioritising capital protection. Our disciplined investment approach and unique underwriting methodology have enabled investors to achieve consistent, quarterly cash yields even during challenging market conditions,” Karthik Athreya, Director at Sundaram Alternates, said.
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, he added.
The platform’s cumulative capital raise for real estate now exceeds ₹2,600 crore across four dedicated funds. To date, SA has deployed over ₹4,200 crore across 74 deals with contracted IRRs of 19%. Overall, the broader alternative investments platform at Sundaram manages more than ₹7,000 crore in cumulative AUM across private credit, liquid fixed income and bespoke equity strategies.
Published on October 6, 2025