Key Takeaways
- • TVS Alts, the private credit platform launched by TVS Capital Funds, plans to raise ₹750 crore with a green-shoe option of ₹500 crore, according to CNBC TV18.
- • The fund targets returns of around 17% through secured lending to performing companies, with individual tickets of ₹40 crore to ₹100 crore.
- • TVS Alts has filed with SEBI, has received internal approvals, and expects regulatory clearance in the coming weeks before active deal origination begins.
- • The fund plans a first close within six months of regulatory approval and a final close within 12-14 months, targeting roughly 14-15 investments over its lifecycle.
- • The launch marks TVS Capital Funds' entry into private credit, extending a franchise that recently closed its fourth private equity fund at nearly ₹4,000 crore.
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 CNBC TV18. The proposed fund will provide secured lending to performing companies and targets returns of around 17%. It will be sector-agnostic and will finance bridge loans, pre-IPO funding, and mergers and acquisitions. Per the company, underwriting will weigh credit profiles, underlying fundamentals and available security, and the fund will avoid distressed assets.
TVS Alts has received internal approvals and has filed applications with the Securities and Exchange Board of India (SEBI). It expects regulatory approvals in the coming weeks, after which it will begin active deal origination. So far the investment team has evaluated 42 potential opportunities, of which two or three are under consideration subject to underwriting and pricing requirements. The fund expects to make around 14-15 investments over its life. It aims to achieve a first close within six months of regulatory approval and a final close within 12 to 14 months.
The fund will target primarily 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. 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, expanding beyond its private equity business. 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 has filed applications with the Securities and Exchange Board of India (SEBI). It expects regulatory approvals in the coming weeks, after which it will begin active deal origination. So far the investment team has evaluated 42 potential opportunities, of which two or three are under consideration subject to underwriting and pricing requirements. The fund expects to make around 14-15 investments over its life. It aims to achieve a first close within six months of regulatory approval and a final close within 12 to 14 months.
The fund will target primarily 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. 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, expanding beyond its private equity business. 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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