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Sundram High Yield Secured Real Estate Fund III

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About Company

Sundaram Alternate Assets Ltd. (SA) is a wholly-owned subsidiary of Sundaram Asset Management Company Limited (SAMC), which specializes in high-net-worth individuals’ investing needs (HNIs). SAMC is a wholly-owned subsidiary of Sundaram Lending Limited, India’s largest non-banking finance firm. Under the Sundaram umbrella, there are two divisions: Sundaram Portfolio Managers (SPM) and Sundaram Alternative Investment Funds (AIFs). Sundaram Alternates tailors solutions to assist you to achieve your long-term wealth-building goals, based on a foundation of trust. Our fund management team has over three decades of experience in the real estate and stock markets, and our strategies are based on cutting-edge industry standards, robust operational models, data-backed research, and transparency to give your money the edge it requires. Invest with the help of Join us and take the next step forward.

Fund Snapshot

Year of Inception June 2021
Number of Stocks 15-20
Investment Horizon 5 years
Fund Managers Sundaram Alternate Assets Limited (SA)

Sundram High Yield Secured Real Estate Fund III

A 5-year close-ended fund investing in high yielding debentures and mezzanine securities1 of Indian entities involved with real estate, logistics, hotels and healthcare businesses.

Investment Objective

  • The main investment objective of the Sundram High Yield Secured Real Estate Fund III is to undertake activities of a Category II AIF and invest in high yielding debentures and mezzanine securities (including equities), of Indian entities involved with real asset industries that may include (but not limited to) real estate (residential, commercial, retail), logistics (warehouses, supply chain facilities, data centers, etc.), hotels (including hostels, resorts) and healthcare facilities (hospitals, senior care homes, etc.). The investments will predominantly be backed by real estate. The instruments will be secured by monetizable assets, related cash flow streams and corporate guarantees, etc.
  • The Sundram High Yield Secured Real Estate Fund III’s investments will mainly focus on de–stressing / de–bottlenecking identified assets / corporate situations via a combination of refinancing existing financiers, last mile funding, rescue financing, acquiring distressed assets and restructuring them with the goal of realizing value and cash from such businesses and companies. The Fund will also seek to acquire portfolios of stressed / distressed assets / secondary debt securities / NCDs from stressed financiers as part of its investment strategy.

SENIOR SUNDARAM GROUP INVOLVEMENT IN THE BUSINESS – STRONG ACCOUNTABILITY & OVERSIGHT

Harsha Viji (Promoter) currently Executive Vice Chairman, Sundaram Finance heading strategy & capital across the Group. Has actively managed the asset mgt. business as MD of Sundaram AMC. Handled strategy, JVs, new business for over a decade and a total of 21 years of experience including at PwC & McKinsey. Commerce graduate, CA & MBA from Ross, U Michigan.

M Ramaswamy has been with Sundaram Finance for over 30 years in various positions and is currently the CFO handling Treasury, Accounting, Taxation & MIS. On the boards of other Sundaram group companies. Also handles risk management & ALM at SF as well as Sundaram Home Finance. He is CA and was a member of Madras Chamber of Commerce & Industry.

Lakshminarayanan Duraiswamy is MD at Sundaram Home Finance. Prior, he was the COO of Sundaram AMC, He has been associated with the Group since 2009 and has a total experience of nearly three decades in credit, compliance and operations including at Citibank and GE Capital. He is a commerce graduate, qualified Cost Accountant and MBA (Loyola, Chennai).

Fund Manager

Harsha Viji

Mr. Harsha Viji is the Deputy Managing Director of Sundaram Finance Limited at the moment. He was formerly the Managing Director of Sundaram Asset Management Company and the Executive Director (Strategy & Planning) of Sundaram Finance. Mr. Harsha is a director on the boards of a number of businesses. Mr. Harsha has a total of 21 (twenty-one) years of experience in various roles with Pricewaterhouse Coopers, Mckinsey & Company, and Sundaram Finance Limited.Mr. Harsha is a Commerce graduate, a Chartered Accountant, and a Master of Business Administration graduate of the University of Michigan’s Ross School of Business.

MARKET ASSESSMENT

Alternate / Private Credit – ‘tip of the Iceberg’

MACRO CREDIT CONTEXT IN INDIA

  • India GDP: ~USD 2.5 tn, expected to grow at at least 3–4% over the long–term
    Debt in the Indian economy is ~USD 2.2 tn with a Debt–to–GDP ratio of 0.9x vs over 2.5x for other similar sized economies
  • Banks and public debt markets account for ~82% of the debt while NBFCs are ~15% & private capital pools account for the rest – banks are the pre–dominant risk capital in India!
  • Structural & ALM crises / management capabilities in NBFCs / HFCs likely to be temporary; LT growth of non–bank space inevitable if there is a free–market approach from RBI
  • Regulations already in place to focus banks (the largest capital providers in India) towards social lending, consumer banking & project finance. Hence, NBFCs /HFCs / MFIs have historically grown 15–25% with the regulatory & cultural arbitrage embedded in Indian credit markets

SUB–SECTOR COUNTER TRENDS

  • Real Estate (RE) sector credit exposure ~USD 90 bn (~4% of overall debt); active investment in Housing, Infra & other hard assets key to sustained GDP growth => LT investment opportunity
  • Ratio of risk capital exactly the opposite in developed markets like EU & USA => private capital / non–bank slated for massive growth LT => multidecadal financing opportunity in India towards alternate assets
Product - AMC Category AUM (in Cr.) Performance 1M 3M 6M 1Y 2Y 3Y 5Y 10Y SI

Sundaram Emerging Leadership Fund (S.E.L.F.)

AMC Name: Sundaram Alternate Assets Limited Inc Date: 29-Jun-10
mid cap
(PMS)
644 Strategy -6.3 -13.9 -16.0 -2.3 32.1 18.3 12.1 18.3 16.9
Nifty Midcap Index -6.5 -10.9 -13.1 -1.9 34.2 14.4 8.3 13.7 10.3

Sundaram Rising Stars Portfolio

AMC Name: Sundaram Alternate Assets Limited Inc Date: 25-Nov-09
small cap
(PMS)
81 Strategy -5.1 -11.7 -12.9 5.7 39.3 13 5.6 17.5 13.9
BSE Smallcap Index -6 -12.2 -15.9 -1.8 41.5 20.3 10 14.2 9.8

Sundaram Voyager Portfolio

AMC Name: Sundaram Alternate Assets Limited Inc Date: 11-Oct-11
multi cap
(PMS)
269 Strategy -6.8 -14.7 -16.5 -2.4 30.2 19 13.7 20.3 19.4
NSE Nifty 500 Index -5.2 -10.1 -10.7 -0.6 25.7 11.5 9.9 12.4 12

Sundaram India Secular Opportunities Portfolio (SISOP)

AMC Name: Sundaram Alternate Assets Limited Inc Date: 22-Feb-10
multi cap
(PMS)
975 Strategy -6.3 -13.3 -16.9 -3.6 25.9 15 11.5 14.5 17.1
NSE Nifty 500 Index -5.2 -10.1 -10.7 -0.6 25.7 11.5 9.9 12.4 10.1

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Disclaimer: Investing Involves Risk. This document is for information purposes only and should not be viewed as a legal offering document or solicitation. Offers to invest in this fund are made only by the Discretionary Portfolio Management Services Agreement. Past performance does not guarantee future results and there is no assurance that the managed accounts will necessarily achieve their objectives. We do not guarantee any returns in the hand of investors not we take any sort of accountability for the performance of the scheme. The above-mentioned data is collected from the respected Fund house please verify the same at SEBI website.