Mumbai, Jan 18 (PTI) 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.

Also Read | Rewarding Information Sharing on Social Media Platforms Like Facebook and Twitter Leads to Spread of Misinformation: Study.

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.

Also Read | Republic Day 2023 Parade Tickets: Know Where And How to Book Ticket For R-Day Event at Kartavya Path in Delhi.

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.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)