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. 'CARE AIF 1' Grade.

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 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


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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.

CareEdge Advisory AIF Grading Disclaimer: CareEdge Advisory’s AIF Grading is not a recommendation to purchase, sell, or hold a security/ fund. It neither comments on the current market price, suitability for a particular investor nor on the prospective performance of the fund with respect to appreciation, volatility of net asset value (NAV), or yield of the fund. The AIF grading does not address the fund’s ability to meet the payment obligations to the investors. The AIF Grading is based on current information furnished to CareEdge Advisory by the fund or obtained by CareEdge Advisory from sources it considers reliable. CareEdge Advisory does not, however, guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. CareEdge Advisory does not perform an audit in connection with any grading and may, on certain occasions, rely on. The grading may be changed, suspended, or withdrawn as a result of changes in, or unavailability of, such information, or based on other circumstances. Funds rated by CareEdge Advisory have paid a grading fee.

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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.