Sundaram Alternates Exits Second Realty Fund with 17% IRR This exit marks a key milestone, highlighting 38 full and 10 partial exits worth INR 2,600 crore achieved over eight years.
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Sundaram Alternates, the alternative investment arm of Sundaram Finance Group, has announced exiting its second real estate credit fund, Sundaram Alternative Opportunities Series – High Yield Secured RE Debt Fund II (SA RE Credit Fund II).
The INR 435 crore fund delivered a gross investor internal rate of return (IRR) of 17 percent following the completion of all portfolio exits, the fund said in a press release.
The fund claims that it had fully deployed its corpus in secured, high-yield debentures issued by real estate developers across key South Indian micro markets. It maintained a disciplined credit approach, emphasizing risk-adjusted underwriting, brownfield projects, and strong sponsor commitments.
Remarkably, the fund achieved zero capital losses during market disruptions between 2019 and 2023, including the COVID-19 pandemic.
The firm's real estate credit platform has completed 38 full exits and over 10 partial exits worth about INR 2,600 crore in the past eight years. During this period, the platform has managed more than 70 transactions across four real estate credit funds, navigating multiple economic challenges such as the NBFC liquidity crisis and pandemic-induced slowdowns.
"Our disciplined investment approach and unique underwriting methodology have enabled investors to achieve consistent quarterly cash yields even during challenging market conditions," said Karthik Athreya, Director at Sundaram Alternates. "With the growing institutionalisation of private credit in India, we see this as a defining decade for private financing and aim to remain a trusted partner for investors."
Sundaram Alternates has cumulatively deployed over INR 4,200 crore across 74 deals, maintaining IRRs of 19 percent. The broader alternatives platform now manages more than INR 7,000 crore across private credit, liquid fixed income, and bespoke equity strategies.
