TVS Capital Funds has launched a private credit platform called TVS Alts. The proposed fund will target an initial corpus of ₹750 crore with a ₹500 crore green-shoe option. It will provide secured lending to performing companies.
Fund strategy
TVS Alts has filed applications with SEBI and expects approvals in the coming weeks. Individual loans will range from ₹40 crore to ₹100 crore. The fund is targeting returns of about 17%.
Leadership and investors
Shyam Srinivasan will lead the platform as co-founder and executive chairman. TVS Capital Funds owns 90% of TVS Alts, and Srinivasan holds the remaining 10%. Potential investors include insurance companies, bank treasuries, and corporates.
Financing focus
The fund will cover bridge financing, pre-IPO financing, and M&A-related funding. Its team has already evaluated 42 potential opportunities. Two or three deals are currently being considered against its credit standards.
TVS Alts aims to complete its first close within six months of receiving regulatory approval. It expects the final close within 12 to 14 months. The launch follows TVS Capital Funds closing its fourth private equity fund at nearly ₹4,000 crore.