Sundaram Alternates ESG-aligned Real Estate Credit Fund V Surpasses Rs. 1,000 Crore in Three Months
Sundaram Alternates has announced that its SA Real Estate Credit Fund V, India’s first ESG-aligned real estate credit fund, has crossed Rs. 1,000 crore in capital commitments within three months of its launch in October 2025. The fund house stated that the fundraise remains open and will conclude by March 2026, with a targeted final corpus of Rs. 1,500–2,000 crore.
The commitments have a diversified investor base comprising insurance companies, family offices, corporate treasuries, and ultra-high-net-worth investors. It also includes a sponsor commitment from the Sundaram Finance Group, reinforcing alignment of interest.
Karthik Athreya, Managing Director of 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.”
The company, in a press release, stated that the fund follows a performing credit strategy focused on senior secured, amortising lending to brownfield and cash-generating residential projects. The approach prioritises capital protection and downside risk management through conservative loan-to-value structures and collateral coverage.
Sundaram Alternates has raised approximately Rs. 3,800 crore across five real estate credit funds and maintained a “zero capital loss” record since inception in 2017. It has deployed Rs. 4,140 crores across 73 deals with an average contracted IRR of 19.1%. Additionally, the company has exited 34 deals of around Rs. 1,829 crores with zero capital losses and an average exit IRR of 20.4%.
Sundaram Alternates is a leading investment management firm in India, known for its disciplined approach to real estate credit. The firm's commitment to ESG (Environmental, Social, and Governance) principles sets it apart in the industry, aligning with the growing global emphasis on sustainable and responsible investing.
