In a notable development within India’s alternative asset management space, Sundaram Alternates, the investment arm of Sundaram Finance, has launched its latest offering AlphaBet Series I. Positioned as a crossover strategy, the fund aims to blend high-conviction equity investing with structured downside protection through secured private credit exposure. The strategy is targeting a corpus of ₹1,500 crore, along with a green shoe option of ₹500 crore.

According to Karthik Athreya, AlphaBet is built on the firm’s CAAS (Capital as a Solution) philosophy, which emphasizes disciplined underwriting, product innovation, and robust risk management. The strategy is designed as a crossover fund that combines listed equities with private credit investments, aiming to deliver 18–20% deal-level returns and mid-teen net returns for investors.

The portfolio will allocate approximately 51–60% to equities across large-cap, mid-cap, and small-cap companies; the remaining portion will be deployed in private credit. On the equity side, the focus will be on companies with strong balance sheets, low leverage, and sustainable growth potential. The private credit component will target senior secured lending opportunities in mid-market companies, backed by cash flows and tangible assets. Within this framework, equities are expected to act as the primary return driver, while the credit allocation is intended to generate periodic income and reduce overall portfolio volatility.

The launch comes as mid- and small-cap segments have recently corrected, creating selective entry opportunities in fundamentally strong businesses. This backdrop aligns with the strategy’s objective of capturing growth while maintaining a structured approach to risk mitigation.

Sundaram Alternates currently manages approximately ₹9,500 crore in assets and has deployed over ₹5,000 crore across 85 deals since 2017. The firm has delivered return profiles ranging between 14% and 21% across its strategies and serves HNWIs, family offices, and institutional investors through AIFs, PMS offerings, and customised managed accounts.

With AlphaBet, Sundaram Alternates aims to offer a differentiated investment proposition that combines equity-led growth with structured downside protection. In an evolving market environment, such crossover strategies are increasingly gaining relevance among investors seeking balanced, risk-adjusted returns while navigating market volatility.