Sundaram Alternates (SA), the specialist alternative investment arm of the Sundaram Finance Group, announced that its Real Estate Credit Fund V — India’s first ESG‑aligned real estate credit fund — has surpassed ₹1,000 crore in capital commitments within three months of its October 2025 launch.
The milestone underscores strong investor confidence in SA’s Category II AIF platform and its performing real estate credit strategy. The fundraise remains open and is expected to conclude by March 2026, with a targeted final corpus of ₹1,500–2,000 crore.
The fund has attracted commitments from a diversified investor base including insurance companies, family offices, corporate treasuries, and ultra‑high‑net‑worth investors. It also carries a sponsor commitment from the Sundaram Finance Group, reinforcing alignment of interest.
Commenting on the achievement, Karthik Athreya, Managing Director, Sundaram Alternates, said: “Crossing ₹1,000 crores within three months reflects the confidence investors place in our underwriting discipline and risk framework. As the fundraise progresses toward its final close, our focus remains on disciplined capital deployment, capital protection, and building long‑term investor relationships.”
At the core of Fund V is a performing credit strategy focused on senior secured, amortising lending to brownfield, cash‑generating residential projects. ESG considerations are embedded into the underwriting and portfolio monitoring process, strengthening asset selection, governance, and portfolio resilience.
Since inception in 2017, Sundaram Alternates has raised over ₹3,800 crore across five real estate credit funds, maintaining a “zero capital loss” record and delivering IRRs in the range of 18–19%. The platform has successfully navigated market cycles including NBFC liquidity stress, RERA and GST implementation, the COVID‑19 pandemic, and recent inflationary pressures.
Investor confidence in ESG‑integrated private credit continues to rise as the sector emerges as a meaningful solution to India’s real estate financing needs. With the real estate sector projected to reach US$1 trillion by 2030 and contribute 13% to GDP, SA’s Fund V positions itself at the intersection of sustainability, capital protection, and growth.
