Sundaram Alternates Achieves INR 1,000 Cr First Close for ESG-aligned RE Credit Fund V

Sundaram Alternates' ESG-aligned Real Estate Credit Fund V has crossed INR 1,000 crore in capital commitments within three months of its launch. The fund was launched in October 2025 by Sundaram Alternates, the alternative investment arm of the Sundaram Finance Group.

According to the company, the fund has drawn commitments from a wide range of investors, including insurance companies, family offices, corporate treasuries and ultra-high-net-worth individuals. The corpus also includes a sponsor commitment from the Sundaram Finance Group, aimed at aligning interests between the sponsor and investors.

The fundraising for the fund remains open and is expected to close by March 2026 with a targeted final size of INR 1,500-2,000 crore.

The fund follows a performing credit strategy that focuses on senior secured and amortising loans to brownfield, cash-generating residential real estate projects. This strategy emphasises capital protection through conservative loan-to-value ratios and adequate collateral coverage. ESG considerations are embedded into the underwriting and portfolio monitoring process, influencing asset selection and governance standards rather than being treated as a separate layer.

Karthik Athreya, Managing Director of Sundaram Alternates, said "Crossing INR 1,000 crore 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."

Sundaram Alternates claims to have raised around INR 3,800 crore across five real estate credit funds so far. The platform reports having deployed approximately INR 4,140 crore across 73 deals with an average contracted internal rate of return of about 19.1%. It has exited 34 deals worth roughly INR 1,829 crore, recording an average exit IRR of 20.4%, with no reported capital losses.