Sundaram Alternate Assets Aims, To Raise Rs 500 Crore

Sundaram Alternate Assets on Wednesday said it is aiming to raise up to Rs 500 crore and lend it to companies struggling to borrow money. The company, a wholly-owned subsidiary of Sundaram Assets Management Company, has already raised Rs 205 crore under the Sundaram Emerging Corporate Credit Opportunities Fund - Series I (ECCO I), as per an official statement.

This is the maiden corporate credit fund and the proceeds will be deployed for lending to small and mid-market borrowers struggling to access capital from regular institutional lenders, as per the statement. The fund will invest in high-yielding debentures and mezzanine securities in a portfolio of companies across small businesses, fintech, manufacturing, and services and the company has pegged the opportunity at over USD 7 billion.

The June 2022-launched ECCO I fund is a Sebi-approved category II AIF (alternative investment fund) and aims to raise Rs 500 crore with a greenshoe option of Rs 500 crore, it said. Till now, it has witnessed participation from marquee family offices, corporate treasuries as well as high-net-worth individuals, the statement said.

(PTI)