The Category II Alternative Investment Fund (AIF), which focuses on senior secured private credit investments, has already deployed more than 85% of the capital raised across a diversified portfolio, the company said.
According to Sundaram Alternates, the fund invests in higher-grade private credit opportunities through secured, cash flow-backed financing structures for mid-market Indian companies. Its portfolio spans sectors including manufacturing, healthcare, consumer, BFSI and clean energy.
The company said the portfolio is currently tracking gross returns of over 15%, in line with its targeted return objectives. The fund aims to provide investors with periodic income through structured private credit investments.
The fund raised commitments from high-net-worth individuals (HNIs), family offices and institutional investors.
Sundaram Alternates said the strategy focuses on providing financing to growth-stage MSMEs, climate-focused businesses and mid-sized corporates that have limited access to traditional bank lending and capital markets. Investments are backed by business cash flows, promoter support and security structures.
The company, which manages alternative investment strategies across private credit, public equities and fixed income, said it has raised nearly ₹7,500 crore across its credit strategies over the past nine years and completed more than 130 transactions.
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