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.

Emerging Corporate Credit Opportunities Fund I
Primary Product Focus
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
Security Cover

Estimated Cash Cover: at least 1.5x the invested value from operations and other identifiable sources

Estimated Hard Asset Cover: target 2x; at least 1.5x the invested value

Geographical Focus
Geographical Focus

Predominantly South India - Tamil Nadu, Karnataka, Telangana, Kerala, Andhra Pradesh, Telangana

Opportunistic investments in Maharashtra and Gujarat

Deal Specifics
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
Key Underwriting Philosophy

Secured assets

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 AIF are subject to various risks viz. market risk, credit risk, investment risk, etc. and subject to various forces and factors for which the AMC has no control. This is for information purposes only and not a complete disclosure of every material fact, and terms and conditions. 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.