Fund News
Sundaram Alternates floats hybrid fund with Rs.1,500-Cr corpus
Sundaram Alternates , the alternative investment arm of the Chennai-based Sundaram Finance Group, is starting a hybrid private credit and equity fund to raise about INR 1,500 crore, with a greenshoe option of INR 500 crore. Investors would be offered 18-20% ballpark returns, with the fund seeking to protect the downside in debt investments.The fund would allocate about 51-60% to listed equities and the remaining 40-49% to high-yield private credit. The fund is expected to be raised over the next six to eight months and will have a five-year tenure with an investment horizon of about four years.The credit portion of the fund will focus on performing mid-market businesses and selective special situations, including real estate brownfield opportunities. It is expected to generate annual returns of around 15-16%, based on the firm’s existing private credit strategies.
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