Sundaram Alternates (SA), the specialist alternative investment arm of the Sundaram Finance Group, has announced the final close of its Performing Credit Opportunities Fund (PCOF) – Series I, a Close Ended Category II AIF, at ₹1,200 crores.

PCOF – Series I was designed to provide investors access to higher-grade private credit opportunities through a disciplined investment approach focused on mid-market Indian businesses. The fund attracted commitments from a diversified base of HNIs, family offices and institutional investors seeking stable income and attractive risk-adjusted returns through structured private credit investments.

 The fund has already drawn down over 85% of the capital raised across a diversified portfolio of investments, reflecting strong deployment since launch. The portfolio is currently tracking gross returns of over 15%, in line with its targeted return objectives.

PCOF follows a senior secured, cash flow-backed credit strategy across sectors including manufacturing, healthcare, consumer, BFSI and clean energy. The strategy focuses on providing customised financing solutions to growth-stage MSMEs, climate friendly businesses and mid-sized corporates that are underserved by traditional lenders and capital markets. Investments are backed by a combination of business cash flows, promoter support and security structures designed to support capital preservation and prudent risk management.

Commenting on the final close, Mr. Karthik Athreya, Managing Director, Sundaram Alternates, said: “As our second corporate credit strategy following the highly successful Ecco I Special Credit Opportunities Fund, PCOF underscores our ability to execute across the full credit spectrum—from AAA-rated bonds to high-yield private credit structures."

 With a 9-year track record, Sundaram Alternates has raised close to ₹7,500 crores across its credit strategies and completed over 130 deals with no capital losses. SA’s private credit platform delivers gross investor returns ranging from 15-20% based on the strategy.

India’s private credit market continues to present a significant growth opportunity, driven by increasing demand for structured and non-bank financing solutions among mid-market companies. As businesses seek flexible sources of growth capital and investors continue to look for differentiated income-generating opportunities, private credit is emerging as an increasingly important segment within the alternatives landscape.

Source: Press release