Sundaram Alternates, the alternative investment arm of the Sundaram Finance, has announced the launch of AlphaBet – Series I, a new balanced equity strategy designed to combine long-term equity investing with structured downside protection through private credit investments.
The strategy aims to raise ₹1,500 crore, with an additional green shoe option of ₹500 crore. It seeks to deliver long-term capital appreciation through equities while providing income stability through secured credit investments.
A Hybrid Investment Strategy
AlphaBet is structured as a hybrid approach that blends two complementary portfolios. The first will focus on listed equities across large-cap, mid-cap and small-cap companies, selected from businesses with strong balance sheets, low leverage and long-term growth potential.
The second portfolio will invest in senior secured private credit opportunities, mainly targeting mid-market companies backed by cash flows and real assets. These credit investments are designed to generate periodic income and reduce overall portfolio volatility.
Together, this structure allows equities to act as the primary driver of returns, while the secured credit component adds stability and predictable income across market cycles.
Targeting Market Opportunities
The strategy is being launched at a time when mid and small-cap segments have recently seen market corrections. According to Sundaram Alternates, several fundamentally strong companies are now trading at more attractive valuations.
Speaking about the launch, Karthik Athreya, Managing Director of Sundaram Alternates, said the firm aims to build a differentiated alternative investment platform based on its “Capital as a Solution” (CAAS) philosophy.
He noted that AlphaBet has been designed to capture long-term opportunities in equities while incorporating structured credit exposure to manage downside risks. This approach, he said, helps investors benefit from growth opportunities while maintaining portfolio resilience.
Investment Framework and Tenor
The fund will primarily focus on cash-flow-backed mid-market businesses and asset-backed opportunities. Credit investments will follow strict underwriting standards and will be supported by enforceable security structures, asset cover and cash-flow protection.
Each investment will typically have a tenor of up to four years, while the overall fund life will be five years, with the option to extend by two additional years.
Sundaram Alternates’ Growing Platform
Sundaram Alternates currently manages around ₹9,500 crore in assets across private credit, liquid fixed income and equity portfolios. The platform serves high net-worth individuals, family offices and institutional investors through offerings such as Alternative Investment Funds (AIFs), Portfolio Management Services (PMS) and customised managed accounts.
Since 2017, the firm has deployed over ₹5,000 crore across 85 deals through performing credit, special situations and real estate credit funds. These strategies have delivered return profiles ranging from 14% to 21%, with performing credit yielding 14–15%, special situations generating 17–18%, and real estate credit targeting an IRR of 18–21%.
With the launch of AlphaBet, Sundaram Alternates is aiming to further strengthen its investment platform by offering innovative strategies that combine equity growth potential with structured risk management.
-By Shivani Solanki
