Sundaram Alternative Opportunities Series - Emerging Corporate Credit Opportunities Fund I

A 6-year close-ended Category II Alternative Investment Fund (AIF), it will invest in high yielding debentures and mezzanine securities (including equity warrants) of MSME, SME, Fintech, Manufacturing, and Services companies in the non-real estate sector.

Fund Details

Primary Product Focus

The Fund shall focus on structured credit needs of small and mid-sized corporates

  • Operating Company Needs: Term Debt Refinance, Working Capital Term Loan, Growth Financing
  • Sponsor Support Needs: Private Equity Exits, Acquisition Finance, Equity Infusion
  • Event Finance: Bridge to IPO/ Business Liquidity Events, Last-mile Financing

Security Cover

  • Estimated Cash Cover: at least 1.5x the invested value from operations and other identifiable sources
  • Estimated Hard Assets Cover: target 2x; at least 1.5x the invested value

Geographical Focus

  • Predominantly South India - Tamil Nadu, Karnataka, Telangana, Kerala, Andhra Pradesh, Telangana
  • Opportunistic investments in Maharashtra and Gujarat

Deal Specifics

  • Ticket Size: ~INR 0.30 - 0.60 Bn
  • Listed/ Unlisted investments in Non-Convertible Debentures
  • Single company exposure: Expected to be ~10-15%

Key Underwriting Philosophy

  • Secured Assetss
  • Returns by way of coupons and redemption premium
  • Exits via:
    • Repayment from operating cash flows over tenor of 4-5 years
    • Upside exits via prepayments
    • Secondary sale to other interested parties

Disclaimer: Investments in AIFs are subject to various risks viz. market risk, credit risk, investment risk, etc. and to various forces and factors over which the AMC has no control. This page is for informational purposes only and is not a complete disclosure of every material fact, and the terms and conditions of the product. It does not constitute a prospectus or information memorandum or an offer to buy any securities or other investments. Please read the fund documents carefully before investing.

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Securities investments are subject to market risks and there is no assurance or guarantee that the objective of the investments will be achieved.