TVS Capital Funds (TCF), known for its private equity investments, has entered the private credit market with the launch of TVS Alts, looking to tap demand for alternative financing.
The proposed fund will target an initial corpus of Rs 750 crore, with a green-shoe option of Rs 500 crore.
Founded in 2007 by entrepreneur and investor Gopal Srinivasan, TCF has focused on investing in growth-stage businesses in India.
Shyam Srinivasan, Executive Chairman of TVS Alternatives and Senior Advisor and Operating Partner at TCF, is one of the founders of the new platform. He will lead its development, drawing on his experience in banking and financial services.
“We are clear about looking at performing credit,” said Shyam Srinivasan, Co-founder and Executive Chairman of TVS Alternatives.
“Our focus will be on companies with sound credit profiles, strong underlying fundamentals and adequate security. We intend to maintain stringent underwriting standards and remain disciplined in our approach to credit quality and pricing,” he added.
The proposed fund will invest across sectors and meet a range of financing needs, including bridge financing, pre-IPO funding and M&A-related funding.
TVS Alts has received internal approvals and has filed applications with the Securities and Exchange Board of India (SEBI). It expects to receive the requisite regulatory approvals in the coming weeks.
The fund 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%.
Like TCF’s private equity business, the private credit strategy will rely predominantly on domestic capital. Potential investors include insurance companies, bank treasuries and corporates looking to diversify their portfolios.
