Key Takeaways
- • TVS Capital Funds has launched TVS Alts, a private credit platform targeting ₹750 crore, with a green-shoe option of ₹500 crore, according to the company.
- • The fund targets returns of around 17% through secured lending to performing (non-distressed) companies, with individual tickets of ₹40 crore to ₹100 crore.
- • The strategy is sector-agnostic and covers bridge financing, pre-IPO funding and M&A financing.
- • TVS Alts has filed with SEBI and expects regulatory approval within weeks; it has evaluated 42 opportunities and expects 14-15 investments over its lifecycle.
- • The fund targets first close within six months of approval and final close within 12-14 months, primarily from domestic investors such as insurers, bank treasuries and corporates.
Summary
TVS Capital Funds has launched TVS Alts, a private credit platform that plans to raise ₹750 crore, with a green-shoe option of ₹500 crore, according to the company. The fund will provide secured lending to performing companies, with individual investments ranging from ₹40 crore to ₹100 crore. It is targeting returns of around 17% and will adopt a sector-agnostic approach, with lending focused on bridge financing, pre-IPO funding and mergers and acquisitions financing. Businesses will be assessed on credit profiles, underlying fundamentals and available security, and the fund will avoid distressed assets.
TVS Alts has received internal approvals and filed applications with the Securities and Exchange Board of India (SEBI). It expects regulatory approvals in the coming weeks, after which it plans to begin active deal origination. So far the investment team has evaluated 42 potential opportunities, of which two or three are under consideration based on underwriting and pricing requirements. The fund expects to make around 14-15 investments over its lifecycle. It aims for a first close within six months of receiving regulatory approval and a final close within 12-14 months.
The fund will primarily target domestic capital, including insurance companies, bank treasuries and corporates seeking portfolio diversification. Shyam Srinivasan, Executive Chairman of TVS Alternatives and co-founder of TVS Alts, will lead the platform, and Manish Makaria, previously associated with TVS Capital Funds and SBI Funds Management, will serve as Managing Partner. TVS Capital Funds holds a 90% stake in TVS Alts, with Srinivasan holding the remaining 10%.
The launch marks TVS Capital Funds' entry into private credit, extending its business beyond private equity. The firm, founded by Gopal Srinivasan in 2007, recently closed its fourth private equity fund with a corpus of nearly ₹4,000 crore.
TVS Alts has received internal approvals and filed applications with the Securities and Exchange Board of India (SEBI). It expects regulatory approvals in the coming weeks, after which it plans to begin active deal origination. So far the investment team has evaluated 42 potential opportunities, of which two or three are under consideration based on underwriting and pricing requirements. The fund expects to make around 14-15 investments over its lifecycle. It aims for a first close within six months of receiving regulatory approval and a final close within 12-14 months.
The fund will primarily target domestic capital, including insurance companies, bank treasuries and corporates seeking portfolio diversification. Shyam Srinivasan, Executive Chairman of TVS Alternatives and co-founder of TVS Alts, will lead the platform, and Manish Makaria, previously associated with TVS Capital Funds and SBI Funds Management, will serve as Managing Partner. TVS Capital Funds holds a 90% stake in TVS Alts, with Srinivasan holding the remaining 10%.
The launch marks TVS Capital Funds' entry into private credit, extending its business beyond private equity. The firm, founded by Gopal Srinivasan in 2007, recently closed its fourth private equity fund with a corpus of nearly ₹4,000 crore.
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