Sundaram Alternates (SA), the specialist alternative investment arm of the Sundaram Finance Group, today announced the final close of SA Real Estate Credit Fund V (India’s first ESG-aligned real estate credit fund) at ₹2,500 crores, achieving full subscription within less than seven months of its launch in October 2025. The Fund has already committed over 90% of the capital raised across investment deals.
The final close surpasses the fund's initial target corpus of ₹1,500 crores, reflecting strong and sustained investor demand for SA's performing real estate credit strategy. The fund had earlier crossed ₹1,000 crores within three months of launch, and investor momentum continued through the final close.
Fund V attracted commitments from a broad cross section of institutional and high-net-worth investors, including insurance companies, family offices, corporate treasuries, and ultra-high-net-worth investors. The fund is also sponsored by the Sundaram Finance Group, reinforcing alignment of interest with investors.
Commenting on the final close, Mr. Karthik Athreya, Managing Director, Sundaram Alternates, said, "Reaching a final close at ₹2,500 crores in less than seven months is a strong validation of the platform we have built over nearly a decade. Investors have consistently backed our discipline — across underwriting, in risk management, and with a high degree of consistency — this outcome reflects that trust. We are grateful for the confidence our investors continue to place in us. With Fund V now close to being fully deployed this quarter, our focus turns to delivering the outcomes we have committed to, while continuing to build our alternates platform for the next phase of growth, which is already well underway with a host of innovative and risk-adjusted products being launched and under development."
At the core of Fund V is a performing credit strategy focused on senior secured, amortising and cash-generating deals from brownfield residential projects. The approach prioritises capital protection and downside risk management through conservative loan-to-value structures and strong collateral coverage.
Further, investors in SA Fund V will also be glad to know that their fund focuses on climate protection and ESG considerations which are embedded into the underwriting and portfolio construction process, including asset selection and governance rather than operating as a separate overlay. This integration strengthens overall credit assessment and portfolio resilience — and positions Fund V as India's first real estate credit fund with a formal “green built” framework.
Sundaram Alternates has now raised over ₹5,500 crores across its real estate credit platform, with Fund V taking total commitments across the series to a new high. The platform has delivered IRRs in the range of 18–19%, maintained a zero capital loss record since inception in 2017, and navigated multiple market cycles including the NBFC liquidity stress, RERA and GST transitions, the COVID-19 pandemic, and recent inflationary periods.
With Fund V fully subscribed, Sundaram Alternates is actively developing the next generation of offerings across its platform, including new mandates under its expanded alternatives franchise.
Investor confidence in ESG-integrated private credit continues to rise as the sector emerges as a meaningful solution to India’s real estate financing needs. India's real estate sector continues to offer a compelling backdrop for performing credit strategies. The sector is projected to reach US$1 trillion by 2030, contributing 13% to GDP, supported by 89 million sq. ft. of office leasing in 2024 and a 35% year-on-year increase in FDI inflows in Q1 2025.
