Sundaram Alternatives raises ₹205 cr from first close of debut corporate credit fund

 

• ECCO I Fund, launched in June 2022, is a SEBI approved Category II AIF and aims to raise ₹500 crore with a green shoe option of ₹500 crore

Sundaram Alternatives announced the first closure of its first corporate credit fund - Sundaram Emerging Corporate Credit Opportunities Fund - Series I (ECCO I) for ₹205 crore. ECCO I Fund, launched in June 2022, is a SEBI approved Category II AIF and aims to raise ₹500 crore with a green shoe option of ₹500 crore.

The fund witnessed participation from leading Family Offices, Corporate Treasuries as well as High-Net-Worth Individuals (HNIs) and crossed around 40% subscription in the first instance within 5 months of launch.

"With a focus on small and mid-market borrowers who are struggling to access capital from regular institutional lenders, ECCO I offers high-yield debentures across a portfolio of companies in MSME, SME, Fintech, Manufacturing and Services and will invest through mezzanine securities. .. This is a space that has an estimated ~USD 4-7 billion credit demand in India," the company said in a release.

The fund will have a differentiated value proposition in the marketplace with a unique fund architecture, tight credit parameters to protect capital and risk-adjusted return structures for investors with the backing of Sundaram Finance Group.


Commenting on the first closing, Vikas M Sachdeva, Managing Director, Sundaram Alternatives and Karthik Atreya Director and Head of Strategy - Alternative Credit - Sundaram Alternates said, "Private credit in India is at an inflection point, and we look forward to expanding this asset class." grow significantly. Similar to global markets. We are well positioned to take advantage of new opportunities created by the current economic environment. India's macros look favourable, and the country is poised to become the fastest growing economy in the world. We look forward to receiving strong investor interest as well as finding attractive deployment opportunities for our strategy which is well positioned in this environment."