Sundaram Alternates (SA), the alternative investment arm of the Sundaram Finance Group, on Monday announced that its SA Real Estate Credit Fund V – India’s first ESG-aligned real estate credit fund- has crossed ₹1,000 crore in capital commitments within three months of its launch in October 2025.
The fundraise remains open and is expected to conclude by March 2026, with a targeted final corpus of ₹1,500–2,000 crore.
The milestone reflects continued investor confidence in SA’s Category II AIF platform and its performing real estate credit strategy, the company said.
The fund is said to have attracted commitments from 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.
“Crossing ₹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,” Karthik Athreya, Managing Director, Sundaram Alternates, said.
The Fund V has a strategy focused on senior secured, amortising lending to brownfield, cash-generating residential projects. ESG considerations are embedded into the underwriting and portfolio monitoring process, informing asset selection and governance rather than operating as a separate overlay.
Sundaram Alternates has raised over ₹3,800 crore across five real estate credit funds, delivering IRRs in the range of 18–19%. The fund is the fifth offering in SA’s established real estate-backed credit series, which has maintained a “zero capital loss” record since inception in 2017.
The platform claims it has also maintained a record of full capital repayment with no defaults across various business cycles.
Published on January 5, 2026