Sundaram Alternates’ Real Estate Credit Fund V crosses Rs 1,000 crore within three months of launch

Sundaram Alternates (SA), the alternative investment arm of the Sundaram Finance Group, has announced that its SA Real Estate Credit Fund V has crossed Rs 1,000 crore in capital commitments within three months of its launch in October 2025.

The firm claims that this is India’s first ESG-aligned real estate credit fund. The fundraise is still open and is expected to close by March 2026. The fund is targeting a final size of Rs 1,500 to Rs 2,000 crore.

The fund has received commitments from a wide range of investors, including insurance companies, family offices, corporate treasuries, and ultra-high-net-worth individuals. The Sundaram Finance Group has also made a sponsor commitment.

Karthik Athreya, Managing Director, Sundaram Alternates, said. "Crossing Rs 1,000 crores within three months reflects the confidence that investors place in our underwriting discipline and risk framework. This momentum reflects nearly a decade of sustained effort in building a robust risk management platform for our credit business. As the fundraise progresses toward its final close, our focus remains on disciplined capital deployment, capital protection, and building long-term investor relationships.”

Fund V follows a performing credit strategy focused on senior secured and amortising loans to brownfield, cash-generating residential projects. The strategy gives priority to capital protection and downside risk management through conservative loan-to-value levels and strong collateral coverage.

ESG factors are built into the underwriting and portfolio monitoring process. These factors guide asset selection and governance decisions and are not treated as a separate layer. This approach helps improve credit assessment and strengthens portfolio resilience.

Sundaram Alternates has raised more than Rs 3,800 crore across five real estate credit funds and has delivered returns in the range of 18 to 19% IRR. Fund V is the fifth fund in SA’s real estate-backed credit series, which has maintained a zero capital loss record since it started in 2017. The platform claims to have achieved full capital repayment with no defaults across challenging periods such as the NBFC liquidity stress, RERA and GST implementation, the COVID-19 pandemic, and recent inflationary cycles.