Sundaram Alternates (SA), the alternative investment platform of the Sundaram Finance Group, has crossed ₹1,000 crore in capital commitments for its SA Real Estate Credit Fund V within three months of launch. The fund, introduced in October 2025, is India’s first ESG-aligned real estate credit fund and marks the fifth offering in the firm’s established real estate-backed private credit series.
The fundraise remains open and is expected to close by March 2026, with Sundaram Alternates targeting a final corpus in the range of ₹1,500–2,000 crore. The early achievement of the ₹1,000 crore milestone highlights sustained investor confidence in SA’s Category II AIF platform and its disciplined approach to performing real estate credit.
Fund V has attracted commitments from a broad mix of institutional and private investors, including insurance companies, family offices, corporate treasuries, and ultra-high-net-worth individuals. The fund also carries a sponsor commitment from the Sundaram Finance Group, reinforcing alignment between the manager and investors.
According to Sundaram Alternates’ management, the strong fundraising momentum reflects the firm’s long-standing focus on underwriting discipline, conservative risk frameworks, and capital protection. Over nearly a decade, the platform has built a structured credit assessment and monitoring system designed to navigate multiple market cycles while preserving investor capital.
The investment strategy for Fund V centres on senior secured, amortising loans to brownfield residential projects that are already generating cash flows. By focusing on completed or near-completion assets, the fund seeks to reduce execution risk while maintaining predictable repayment profiles. Conservative loan-to-value ratios and strong collateral coverage form the backbone of the fund’s downside protection approach.
Criteria of environmental, social, and governance (ESG) issues have been directly incorporated into the fund’s underwriting and ongoing portfolio management process. Instead of being used as a overlay process, ESG factors help to improve overall portfolio resilience/credit by focusing on key aspects of asset allocation, governance, and risk.
Since its launch in the year 2017, Sundaram Alternates has managed to raise over ₹3,800 crore funds in five real estate credit funds. This investment platform has managed to achieve IRR between the ranges of 18 to 19 percent with a total ‘zero capital loss’ track record in their overall real estate credit funds. Even during conditions such as the NBFC liquidity crisis, RERA, GST, the COVID-19 pandemic, as well as the inflationary trends, full repayment has been done.
The successful progress of Fund V comes at a time when investor appetite for ESG-integrated private credit strategies is growing. With traditional funding channels remaining selective, private credit has emerged as a key financing solution for India’s real estate sector. The sector itself is projected to reach a size of US$1 trillion by 2030 and contribute nearly 13% to India’s GDP, supported by strong office leasing activity and rising foreign direct investment inflows.
On this achievement, Karthik Athreya, the Managing Director at Sundaram Alternates, stated that the fact that the funds have reached the ₹1,000 crore mark in just three months is a testament to the confidence reposed in the firm's underwriting acumen and risk management framework. The hard work put into developing a comprehensive credit risk management framework over the last nine years has clearly started paying off.” Now, as the funds move closer to the final close, the emphasis continues to remain on prudent allocation and protection of capital.
With Fund V, Sundaram Alternates continues to position itself as a long-term participant in India’s real estate credit market, combining capital protection, ESG integration, and consistent execution across market cycles.
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