Sundaram Alternates has raised ₹200 crore at the close of its debut corporate credit fund, Sundaram Emerging Corporate Credit Opportunities Fund-Series I.

It will invest in high-yielding debentures and mezzanine securities in a portfolio of companies across the MSME, SME, fintech, manufacturing and services segments. This has an estimated credit demand of $4-7 billion in India.

Launched last June, the fund is a SEBI-approved category II AIF and aims 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 and crossed 40 per cent subscription at the first close in five months after the launch.

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The strong demand for this current income-oriented fund has been driven by a differentiated fund strategy and a growing appetite among investors for high-yield debt products as an effective diversification strategy in the backdrop of volatile equity markets.

Vikaas M Sachdeva, Managing Director, Sundaram Alternates, said private credit is at an inflection point and this asset class is evolving significantly similar to global markets. While the fund will capitalise on new opportunities created by the current economic environment, the macros look favourable with the country set to become the fastest-growing economy in the world, he said.

Sundaram Alternates is a wholly-owned subsidiary of Sundaram Assets Management Company.

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