TVS Capital Funds has launched TVS Alts, a private credit platform that plans to raise ₹750 crore, with a green-shoe option of ₹500 crore. The proposed fund will focus on secured lending to performing companies, with individual investments ranging from ₹40 crore to ₹100 crore.
The fund is targeting returns of around 17% and will adopt a sector-agnostic investment strategy. Its lending focus will include bridge financing, pre-IPO funding and financing for mergers and acquisitions (M&A).
According to the company, the fund will assess businesses based on their credit profiles, underlying fundamentals and available security. It will focus on performing companies rather than distressed assets.
TVS Alts has received internal approvals and filed applications with the Securities and Exchange Board of India (SEBI). It expects to receive regulatory approvals in the coming weeks, after which it plans to begin active deal origination.
The investment team has evaluated 42 potential opportunities so far, of which two or three are being considered based on underwriting and pricing requirements. The fund expects to make around 14-15 investments over its lifecycle.
TVS Alts aims to achieve its first close within six months of receiving regulatory approval and complete its final close within 12-14 months.
Domestic investors to be targeted
The proposed fund will look primarily at domestic capital, with potential investors including insurance companies, bank treasuries and corporates seeking to diversify their portfolios.
Shyam Srinivasan, Executive Chairman of TVS Alternatives and co-founder of TVS Alts, will lead the new platform. Manish Makaria, who has previously worked with TVS Capital Funds and SBI Funds Management, will serve as Managing Partner.
TVS Capital Funds holds a 90% stake in TVS Alts, while Srinivasan holds the remaining 10%.
The launch marks TVS Capital Funds’ entry into private credit, expanding its business beyond private equity. Founded by Gopal Srinivasan in 2007, the firm recently closed its fourth private equity fund with a corpus of nearly ₹4,000 crore.
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