<article><a href="http://dealstreetasia.com/tag/tata-capital">Tata Capital</a>, the flagship financial services arm of the diversified Tata Group, has kicked off the process to raise as much as $200 million (Rs 1,400 crore) for its second healthcare fund, VCCircle <a href="https://www.vccircle.com/tata-capital-targets-bigger-corpus-for-second-healthcare-private-equity-fund?utm_source=VCCircle+November+22%2C+2018&amp;utm_campaign=Constant+Contact&amp;utm_medium=email">reported</a>.</article>

<a href="http://dealstreetasia.com/tag/tata-capital">Tata Capital</a>, the flagship financial services arm of the diversified Tata Group, has kicked off the process to raise as much as $200 million (Rs 1,400 crore) for its second healthcare fund, VCCircle <a href="https://www.vccircle.com/tata-capital-targets-bigger-corpus-for-second-healthcare-private-equity-fund?utm_source=VCCircle+November+22%2C+2018&amp;utm_campaign=Constant+Contact&amp;utm_medium=email">reported</a>.
The new fund would be almost three times bigger than the previous fund, Tata Capital Healthcare Fund I, which received capital commitments of Rs 319 crore (about $62 million) in April 2012. Of this, the fund invested Rs 245 crore in portfolio companies, according to its annual report for the fiscal 2017-18.
The company has begun talks with limited partners, or investors, for the second healthcare fund, the report added. It will replicate the strategy of its predecessor fund. The fund is, however, unlikely to reach the first close this year.
An emailed query to Tata Capital did not elicit a response at the time of filing this article.
As per the annual report, the first fund targeted significant minority positions in portfolio companies with board representation and other significant shareholder rights. It provided growth capital funding to companies with an average size of approximately Rs 35 crore and holding period ranging from two to eight years.
Quoting Tata Capital chief executive and managing director Rajiv Sabharwal, the VCCircle report said that the first fund has been fully deployed.
In the pharmaceutical space, the first fund had invested in Intas Biopharmaceuticals Ltd, NovaLead Pharma Pvt. Ltd, Amanta Healthcare Ltd, Konverge Healthcare Pvt. Ltd, Sai Life Sciences Ltd and Brinton Pharmaceuticals Ltd. TCHF recorded a full exit in Amanta Healthcare Limited, with an MOIC of 1.9 times and Investment IRR of 15 per cent, the annual report added.
Overall, Tata Capital has set up four private equity funds in India, including Tata Capital Growth Fund I, Tata Capital Healthcare Fund I, Tata Capital Innovations Fund and Tata Capital Special Situations Fund &#8211; Trust.
Tata Capital is reportedly looking to launch an infrastructure debt fund to finance clean energy projects. The company is in advanced stages of discussions with partners for the fund and will be applying for requisite approvals on finalisation of the plans, The Economic Times recently reported.
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At this amount, the new fund would be almost three times bigger than the previous fund, Tata Capital Healthcare Fund I, which received capital commitments of Rs 319 crore (about $62 million) in April 2012.

Tata Capital on road to raise $200m for second healthcare fund: Report

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Tata Capital on road to raise $200m for second healthcare fund: Report

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