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.
For investment related articles, business news and mutual fund advise
You have already subscribed
Story first published: Thursday, January 19, 2023, 9:27 [IST]