UTI Alternatives floats Rs 1,500 cr SDOF IV to target mid market credit options

UTI Alternatives, the private markets platform of UTI Asset Management Company (UTI AMC), has announced the launch of the UTI Structured Debt Opportunities Fund IV (SDOF IV), deepening its commitment to India’s mid-market credit space.

Under SEBI’s registered Category II Alternative Investment Fund (AIF), SDOF IV is planned as a ₹1,500 crore fund. It aims to create a diversified portfolio of performing credit exposures with periodic income distributions, targeting mid-to-high teen returns. The fund will continue UTI Alternatives’ disciplined approach to private credit, leveraging structures and active monitoring to balance growth with downside protection.

SDOF IV

SDOF IV marks the continuation of UTI Alternatives’ private credit journey that began in 2017. Over the past eight years, the firm has built a robust track record through its earlier vintages — SDOF I, II, and III — which navigated multiple market cycles while addressing the financing needs of mid-market borrowers. Collectively, the platform has backed over 40 companies across sectors such as healthcare, education, consumer goods, manufacturing, and renewables, with 20+ full exits achieved.

“SDOF IV is built on the same disciplined, collateral-backed approach that underpins the earlier vintages. We continue to see a meaningful financing gap in India’s mid-market, where bespoke, performing credit solutions can support growth while aiming to protect downside through structure and active monitoring,” said Rohit Gulati, Chief Executive Officer, UTI Alternatives.

Credit solutions

Structured debt typically combines multiple financing instruments to provide tailored capital for businesses. SDOF IV seeks to originate and structure cash flow–based transactions, supported by robust security packages and covenant protections.

According to Shaurya Arora, Chief Investment Officer, UTI Alternatives, the fund’s strategy is rooted in origination of unique transactions and rigorous underwriting. “Our screening process involves in-house reviews, research, and diligence by external partners. Many of the companies we back are first-time issuers in private credit, with SDOF schemes often being exclusive subscribers to these issues,” Arora said.

Investors and borrowers

SDOF funds have sought to bridge sophisticated investors — including ultra-high-net-worth family offices and domestic as well as global institutions — with India’s mid-market enterprises that often face a financing gap due to limited access to traditional debt markets. The fund’s structure and governance-driven approach aim to offer investors an attractive blend of income generation and capital preservation.

About UTI Alternatives and SDOF IV

SDOF IV Corpus: Planned at Rs 1,500 crore under Category II AIF

Objective: Build performing credit portfolios with periodic distributions

Strategy: Origination of cash flow–backed deals, strong security, prudent covenants

Track Record: Over 40 investments and 20+ exits across three vintages

UTI Alternatives, a wholly owned subsidiary of UTI AMC, manages strategies across private credit, real estate credit, special situations, and equity-linked opportunities. It also facilitates co-investments under SEBI’s co-investment portfolio manager framework.

With SDOF IV, UTI Alternatives is reinforcing its role as a leading player in India’s private credit market, targeting growth capital for mid-market companies while offering investors structured opportunities with a strong governance overlay.