<article>Delhi-based buyout firm TIW Private Equity is gearing up to launch a new fund next year with a targeted amount of around $100 million.</article>

Delhi-based buyout firm TIW Private Equity is gearing up to launch a new fund next year with a targeted amount of around $100 million.
The SME-focused investor has so far raised around Rs 450 crore, which it plans to deploy more aggressively this year, TIW&#8217;s Managing Partner and CIO Mohit Ralhan told DEALSTREETASIA in an interview.
&#8220;This year is going to be more exciting. We are going to see at least 3-4 more deals in this calendar year,&#8221; he added.
The sector-agnostic investor typically picks up controlling stakes in small and medium enterprises for around Rs 50-70 crore. However, cheque sizes could go as low as Rs 25 crore, depending on the opportunity.
&#8220;We don’t want to change our strategy, even ten years down the line we will not change our SME- focus buyout strategy&#8230; the only change is fund size which is due to inflation adjustment in dollar terms,&#8221; explained Rahlan, a former Baring Private Equity executive.
Some of the companies the fund has invested in so far include Kaunis Marketing Services, Plovio Value Chain Solutions, Sunray Labs and Arth Designbuild.
TIW PE is also keen to invest in consumer-driven sectors and the fast-moving consumer goods (FMCG) space, where it is likely to strike a deal soon.
Calling TIW PE a &#8220;margin expansion fund&#8221;, Rahlan said the companies that usually come up on the private equity firm&#8217;s radar are either those that were debt-laden and cash strapped; those that have succession issues wherein the heirs of the entrepreneur are not interested in taking the business forward, or those startups where the entrepreneur gave up too much stake too early.
&#8220;We are in the business of buying inefficiencies, which always doesn’t mean profitability, but it also means high debt, succession issues, entrepreneurs becoming a minority and wanting to gain back control. These are the kind of situations where we step in,&#8221; said Rahlan.
A large number of companies in the SME space present a wide array of opportunities for investment for TWI PE and with strategics showing a keen interest in investing in profitable businesses, exit opportunities are also favourable in this segment, opines Rahlan.
&#8220;If I am increasing the profitability of a company, there will always be a buyer. The only debate is the price, which is a fair argument to have,&#8221; he said.
Other mid-market private investors currently raising funds include Lighthouse, which is targeting to raise up to $240 million and Amicus Capital ($200 million). Private equity fund Zephyr Peacock India recently raised around $33 million for its fourth fund focused on small and medium enterprises (SMEs). The firm is reportedly looking to raise $100-150 million for the fund.
Private equity firm Mandala Capital is also raising $300 million for its third fund to invest in companies in India and Southeast Asia.
Also Read:
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/lighthouse-third-fund-110284/" target="_blank" rel="noopener">India-focused PE Lighthouse expands target for third fund with $40m greenshoe option</a>
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/india-zephyr-peacock-fourth-fund-109263/" target="_blank" rel="noopener">India-focused PE fund Zephyr Peacock raises $33m for fourth fund</a>
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/mandala-india-se-asia-fund-104851/" target="_blank" rel="noopener">PE firm Mandala Capital plans $300m fund for India, SE Asia</a>

The sector-agnostic investor typically picks up controlling stakes in small and medium enterprises for around Rs 50-70 crore.

Indian buyout firm TIW PE plans to launch $100m new fund next year

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Indian buyout firm TIW PE plans to launch $100m new fund next year

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