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 just three months of its launch in October 2025.
Meanwhile, the fundraiser remains open and is expected to conclude by March 2026, with the firm targeting a final corpus in the range of ₹1,500–2,000 crore.
According to the company, this milestone highlights sustained investor confidence in SA’s Category II AIF platform as well as its performing real estate credit strategy.
Additionally, the fund has drawn commitments from a diversified investor base that includes insurance companies, family offices, corporate treasuries, and ultra-high-net-worth individuals. It also features a sponsor commitment from the Sundaram Finance Group, which further strengthens 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 fundraising 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.
Fund V follows a strategy centred on senior secured, amortising lending to brownfield, cash-generating residential projects. Importantly, the fund embeds ESG considerations directly into its underwriting and portfolio monitoring processes, ensuring that sustainability informs asset selection and governance rather than functioning as a separate overlay.
To date, Sundaram Alternates has raised more than ₹3,800 crore across five real estate credit funds and has delivered internal rates of return in the range of 18–19%. Furthermore, Fund V represents the fifth offering in SA’s established real estate-backed credit series, which has maintained a zero capital loss track record since its inception in 2017.
The platform also states that it has consistently achieved full capital repayment with no defaults across multiple business cycles.
Overall, the rapid fundraising success of SA Real Estate Credit Fund V underscores Sundaram Alternates’ strong positioning in ESG-aligned real estate credit, backed by disciplined underwriting, robust risk management, and a long-standing record of capital protection. As the fund moves toward its final close, the firm appears well placed to deepen investor trust while scaling its sustainable credit strategy.
