Opportunistic credit
Flexible security and cash-flow structures for fundamentally strong corporate groups, with downside protection.
Category II Corporate Credit AIF
Sundaram Alternates Emerging Corporate Credit Opportunities Fund - Series II
SA Ecco II is a Sundaram Alternates corporate credit strategy focused on senior secured, opportunistic and special situations lending opportunities across Indian mid-market companies.
Fund Snapshot
A credit strategy built around yield, structure and capital recycling
The executive summary positions SA Ecco II as the second vintage of a corporate credit strategy, with a target first close of approximately INR 300-500 crore and a target corpus of INR 2,500 crore plus greenshoe.
Target Corpus
INR 2,500 Cr
With greenshoe option of INR 1,500 crore.
Fund Tenor
6.5 Years
Extension up to 2 years with investor consent.
Minimum Investment
INR 1 Cr
As listed in the executive summary.
Strategy Buckets
Three credit buckets across performing and special situations
The fund balances credit quality, security structure and targeted returns through opportunistic credit, senior secured credit and special situations credit.
Senior secured credit
Lending to performing mid-market borrowers using collateral, guarantees, covenants and repayment flexibility.
Special situations
Debt settlement, post-stress growth capital and cash-flow mismatch financing with control-oriented structures.
Credit Discipline
Senior secured lending with identified exit cash flows
The materials highlight short tenors, asset-backed structures, identified cash flows for exits and senior secured lending discipline across deals.
- Target 15-25 investments, including capital recycling.
- Estimated investment size of INR 100-300 crore per deal.
- Single borrower exposure indicated around 10%-15%.
- Single industry concentration indicated around 25%.
- Real estate exposure capped at 25% in the executive summary.
Distribution Profile
Quarterly distribution mechanics
The fund materials describe periodic distributions and principal-repayment mechanics. Actual cash flows depend on portfolio performance, realizations and the governing fund documents.
- All accrued income is described as distributed every quarter.
- Principal repayments during the investment period may be redeployed.
- Principal repayments after the investment period are expected to be returned alongside quarterly distributions.
- AIF schemes are not guaranteed or assured income schemes.
Key Terms
Close-ended Category II AIF structure
Final terms are governed by the Private Placement Memorandum and contribution documents. The summary below is based on the July 2026 executive summary.
Taxation
The document mentions pass-through status to investors for the Category II AIF structure.
Drawdown
Multiple drawdown structure: 25% upfront and balance in tranches over a 12-15 month period.
Economics
Hurdle rate of 12% pre-tax INR IRR and performance fee above hurdle only at fund maturity.
Why Corporate Credit?
A differentiated private credit allocation for sophisticated portfolios
Corporate credit AIFs can complement listed equity and traditional fixed-income allocations where investors understand credit risk, liquidity constraints, security structures and manager execution risk.
Structured downside protection
Credit underwriting can include collateral, guarantees, covenants, share pledges, escrow mechanisms and defined exit cash flows.
Income-oriented design
The fund is positioned around quarterly distribution of accrued income, subject to portfolio performance and available cash flows.
Private market access
Investors can access mid-market corporate credit opportunities beyond public debt markets and traditional fixed-income products.
Disclaimer: This page is for investor education and product discovery only. It is not investment advice, an offer, or a recommendation. Returns shown are indicative and not guaranteed. Investors should read the PPM, contribution agreement and all official documents, and consult their legal, tax and financial advisors.
FAQ
SA Ecco II is the Emerging Corporate Credit Opportunities Fund - Series II by Sundaram Alternates, positioned as a close-ended Category II Alternative Investment Fund focused on corporate credit opportunities in India.
The executive summary describes three strategy buckets: opportunistic credit, senior secured credit to performing mid-market clients, and special situations credit, with all investments subject to investment committee approval.
The executive summary lists INR 1 crore as the minimum investment. Eligibility, onboarding and final terms are governed by the fund documents.
The materials state that accrued income is intended to be distributed quarterly, with largely amortizing structures and principal treatment depending on the investment period.
Next Step
Discuss SA Ecco II With BlackSwan Securities
Connect with our investment team to understand suitability, documentation, drawdown schedule and subscription process for corporate credit AIFs.