New fund · Professional & Local Services

Sundaram Alternates fund raises Rs 1,000 crore

By Startup Enthusiast · 5 January 2026

What they do

Its fifth real estate credit fund reached Rs 1,000 crore in commitments within three months of launch

The fund targets Rs 1,500-2,000 crore and claims to be India's first ESG-aligned real estate credit fund

The platform has delivered 18-19% returns with zero capital loss since 2017

Sundaram Alternates' fifth real estate credit fund, SA Real Estate Credit Fund V, has raised over Rs 1,000 crore in commitments.
The fund was launched in October 2025 and reached this milestone within three months.
The fundraise remains open and is expected to close by March 2026.
The target final size for the fund is Rs 1,500 to Rs 2,000 crore.
The fund focuses on performing credit, senior secured and amortising loans to brownfield, cash-generating residential projects.
It prioritises capital protection and downside risk management through conservative loan-to-value levels and strong collateral coverage.
ESG factors are integrated into underwriting and portfolio monitoring, guiding asset selection and governance decisions.
The fund claims to be India's first ESG-aligned real estate credit fund.

This fundraise shows strong investor demand for structured real estate credit in India.
The platform has a track record of zero capital loss since 2017, which builds investor confidence.
The fund's ESG focus could set a new standard in the Indian real estate credit market.
The sponsor commitment from Sundaram Finance Group signals alignment with investor interests.

Sundaram Alternates manages real estate credit funds, providing loans to residential projects.
It focuses on performing credit, meaning loans to projects that are generating cash flow.
The platform has raised over Rs 3,800 crore across five real estate credit funds since 2017.
It has delivered returns in the range of 18 to 19% IRR (internal rate of return, a measure of annualised return).
The platform claims full capital repayment with no defaults during NBFC liquidity stress, RERA and GST implementation, COVID-19, and recent inflationary cycles.
Investors include insurance companies, family offices, corporate treasuries, and ultra-high-net-worth individuals.
The fund series started in 2017 and has maintained a zero capital loss record.

Sundaram Finance Group (sponsor) — The sponsor of the fund, providing a commitment.