Sundaram Alternates raises ₹205 cr from first close of debut credit fund

Market


Sundaram Alternates announced the first close of its debut Corporate Credit fund – Sundaram Emerging Corporate Credit Opportunities Fund – Series I (ECCO I) at 205 crore. The ECCO I fund, launched in June 2022, is a SEBI-approved category II AIF and aiming to raise 500 crore with a green shoe option of 500 crore. 

The fund saw participation from marquee family offices, corporate treasuries as well as high-net-worth individuals (HNIs) and crossed around 40% subscription in the first close within 5 months of the launch.

“With a focus on small and mid-market borrowers who are struggling to access capital from regular institutional lenders, ECCO I will invest via high-yielding debentures and mezzanine securities in a portfolio of companies across MSME, SME, Fintech, Manufacturing, and Services. This is a space that has an estimated ~USD 4-7 billion credit demand in India,” the company said in a release.

The fund will have a differentiated value proposition in the marketplace with a unique fund architecture, tight credit parameters to protect capital and risk-adjusted return structures for investors with the backing of Sundaram Finance Group, it added.

Commenting on the first close, Vikaas M Sachdeva, Managing Director, Sundaram Alternates and Karthik Athreya Director and Head of Strategy – Alternative Credit – Sundaram Alternates said, “Private Credit in India is at an inflection point, and we see this asset class evolving significantly similar to global markets. We are well-positioned to capitalize on new opportunities created by the current economic environment. India’s macros look favorable, and the country is set to become the fastest-growing economy in the world.. We look forward to receiving strong investor interest as well as finding attractive deployment opportunities for our strategy which is well-positioned in this environment.”


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