Key Takeaways
- • TVS Capital Funds (TCF), a private equity firm founded in 2007 by Gopal Srinivasan, has entered private credit through a new platform called TVS Alts.
- • TVS Alts will target an initial corpus of Rs 750 crore, with a green-shoe option of Rs 500 crore.
- • The fund will provide secured lending to performing companies with individual tickets of Rs 40 crore to Rs 100 crore and targeted returns of around 17%.
- • TVS Alts has filed applications with SEBI and has received internal approvals, with regulatory approvals expected in the coming weeks.
- • Shyam Srinivasan, Executive Chairman of TVS Alternatives, will lead the platform, which will rely predominantly on domestic capital.
Summary
TVS Capital Funds (TCF), known for its private equity investments, has entered the private credit market with the launch of TVS Alts, according to the primary report. The platform is aimed at tapping demand for alternative financing among mid-market Indian companies.
The proposed fund will target an initial corpus of Rs 750 crore, with a green-shoe option of Rs 500 crore. It will focus on secured lending to performing companies, with individual ticket sizes ranging from Rs 40 crore to Rs 100 crore and targeted returns of around 17%. The strategy will invest across sectors and address a range of financing needs, including bridge financing, pre-IPO funding and M&A-related funding.
Shyam Srinivasan, Executive Chairman of TVS Alternatives and Senior Advisor and Operating Partner at TCF, is one of the founders of the new platform and will lead its development, drawing on his experience in banking and financial services. Srinivasan said the firm is "clear about looking at performing credit," with a focus on companies with sound credit profiles, strong underlying fundamentals and adequate security. He added that the firm intends to maintain stringent underwriting standards and remain disciplined on credit quality and pricing.
TVS Alts has received internal approvals and has filed applications with the Securities and Exchange Board of India (SEBI), and expects to receive the requisite regulatory approvals in the coming weeks. Consistent with TCF's private equity business, the private credit strategy will rely predominantly on domestic capital, with potential investors including insurance companies, bank treasuries and corporates seeking to diversify their portfolios.
TCF was founded in 2007 by entrepreneur and investor Gopal Srinivasan and has historically focused on growth-stage businesses in India. The launch extends that franchise into lending to mid-market firms.
The proposed fund will target an initial corpus of Rs 750 crore, with a green-shoe option of Rs 500 crore. It will focus on secured lending to performing companies, with individual ticket sizes ranging from Rs 40 crore to Rs 100 crore and targeted returns of around 17%. The strategy will invest across sectors and address a range of financing needs, including bridge financing, pre-IPO funding and M&A-related funding.
Shyam Srinivasan, Executive Chairman of TVS Alternatives and Senior Advisor and Operating Partner at TCF, is one of the founders of the new platform and will lead its development, drawing on his experience in banking and financial services. Srinivasan said the firm is "clear about looking at performing credit," with a focus on companies with sound credit profiles, strong underlying fundamentals and adequate security. He added that the firm intends to maintain stringent underwriting standards and remain disciplined on credit quality and pricing.
TVS Alts has received internal approvals and has filed applications with the Securities and Exchange Board of India (SEBI), and expects to receive the requisite regulatory approvals in the coming weeks. Consistent with TCF's private equity business, the private credit strategy will rely predominantly on domestic capital, with potential investors including insurance companies, bank treasuries and corporates seeking to diversify their portfolios.
TCF was founded in 2007 by entrepreneur and investor Gopal Srinivasan and has historically focused on growth-stage businesses in India. The launch extends that franchise into lending to mid-market firms.
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