Sundaram Alternates, the alternative assets and portfolio management services arm of Sundaram Finance Group, has marked the final close of its second private credit fund--Performing Credit Opportunities Fund (PCOF) – Series I--after raising Rs 1,200 crore (around $126 million), the company said in a statement.
The investment house that has five real-estate focussed credit funds had previously raised its maiden private credit fund, the Emerging Corporate Credit Opportunities Fund I, in 2024.
A category II alternative investment fund, PCOF – Series I is designed to provide investors access to higher-grade private credit opportunities and is focussed on mid-market Indian businesses.
The fund has attracted commitments from a diversified base of high-net-worth individuals (HNIs), family offices and institutional investors seeking stable income and risk-adjusted returns through structured private credit investments.
PCOF has already drawn down over 85 per cent of the capital and the portfolio is currently tracking gross returns of over 15 per cent, in line with its targeted return objectives, as per the statement.
The fund takes exposure across sectors such as manufacturing, healthcare, consumer, BFSI and clean energy. Its strategy focusses on providing customised financing solutions to growth-stage MSMEs, climate-friendly businesses and mid-sized corporates that are underserved by traditional lenders and capital markets.
“The final close of PCOF – Series I marks another important milestone for our private credit platform. As our second corporate credit strategy following the Ecco I Special Credit Opportunities Fund, PCOF underscores our ability to execute across the full credit spectrum—from AAA-rated bonds to high-yield private credit structures,” said Karthik Athreya, managing director, Sundaram Alternates.
As per the statement, India’s private credit market continues to present a significant growth opportunity, driven by increasing demand for structured and non-bank financing solutions among mid-market companies.
Recently, Sundaram Alternates hit final close of its Real Estate Credit Fund V at ₹2,500 crores. It also recently launched AlphaBet – Series I fund, which seeks to invest in listed equities and to strike private credit transactions, with a target corpus of Rs 1,500 crore (around $163 million) and a greenshoe option of Rs 500 crore.
The firm claims to have successfully raised close to Rs 7,500 crores across its various credit strategies so far and to have done over 130 deals with zero capital losses. Its private credit platform has delivered gross investor returns ranging from 15-20 per cent based on the strategy.
The alternative investment arm serves high-net-worth individuals, family offices, and institutional investors through offerings spanning alternate investment funds (AIFs), portfolio management services (PMS), and customised managed accounts across private credit, public equities, and liquid fixed income strategies.
SA manages close to Rs 12,000 crores in assets to date.