Tata Capital Growth Fund to Raise $350 million in 2016
Mumbai, India | Red Newswire | Nov 23, 2015 Last Updated at 04:40 PM IST.
In its first fund of 2011, Tata Capital Growth Fund or TCGF raised $240 million and it is planning to raise it to $350 million in 2016. TCGF is a private equity unit of Tata Capital involved with management of $1 billion fund. A number of private equities and venture capital units of Tata Capital including TCGF’s $350 million, are planning on launching fund – raising for $1 billion.
Akhil Awasthi, managing partner at TCGF said, “We will shortly launch our fund-raising programme and we believe 2016 is a spectacular year for raising capital. We have returned nearly 70% of the capital to our investors from our first fund.”
Launch of the fund-raising will take place in the first half of the coming year. Expectations are to close at $200 million by the middle of 2016. Once the first close is achieved, investment can be started.
Awasthi added, “In this fund, we also have the option for limited partners (LPs) to co-invest with us and we are expecting returns of 22-27%, similar as our last fund.” In a PE fund, the limited partners or LPs are the investors.
This fundraising comes at a time when TCGF’s 70% fund of $240 million has been put into investment for its nine new deals plus three follow-on portfolio firms investments. Presently it deals with funds in the range of $10-25 million. With the coming of the second fund, it might pursue bigger deals of $15-35 million.
TCGF is in talks for partnering with Mizuho Securities Pvt. Ltd of Japan. It had tied up with Mizuho for the first fund also. This partnership is expected to fetch some advantages over Indo-Japanese deals. The company focuses its investments on urbanization, strategic services and manufacturing.
Star Health and Allied Insurance Ltd, Nearex Pte Ltd, Standard Greases and Specialities Pvt. Ltd, Janalakshmi Financial Services Pvt. Ltd, Tata Technologies Ltd and Home First Finance Co. are some of its investments. TCGF is currently looking to exit another investment before beginning the next fund-raising round.