High Yield Secured Debt Fund I

A 4-year close-ended Category II AIF which will invests in fully secured high yielding securities issued by Indian Real Estate developers/ companies predominantly in South India.

Mauritius feeder fund to pool monies from international investors.

Key Product Features

Instrument Structure

  • 100% of the deals to be debt focused with fixed returns from coupons and redemption premiums. Within this:
    • ~75 - 80% of the portfolio to be focused on self-liquidating residential real estate projects
    • ~20 - 25% of the portfolio may also participate in security backed special situations deals that could have commercial Assetss/ other physical collaterals
  • Typically 2 - 3 year deals; with amortising loans
  • Endeavour to create a diversified portfolio
  • Single company exposure limited to a maximum of 25% of the fund

Transactions

  • A mix of transactions at various stages; the fund will largely focus on post approval projects and not take land stage risks unless backed by existing cash flows
  • Business cash flows are base case exit routes for loans i.e. non-capital markets correlated

Focused Product & Customer Strategy

Opportunistic high yield secured credit to:

  • Tier 2 & 3 developers predominantly in Chennai, Bangalore, Hyderabad & to a smaller extent, other select micro markets like Pune/ Mumbai for early stage working capital needs/ refinancing on-going projects backed by mortgage + cash flows

Medium yield secured credit to:

  • Tier 1 developers for corporate funding backed by cash flows
  • Select Tier 2 & 3 developers for construction finance and working capital purposes (i.e. relatively lower execution risks) backed by mortgage + cash flows

Disclaimer: Past performance may or may not be sustained in future. AIF schemes are not guaranteed and assured income schemes. AIF investments are subject to market risks and there is no assurance or guarantee that the objective of the investments will be achieved. For more information on AIF, please write to aifops@sundaramalternates.com

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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.