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TVS Capital bets on private credit with Rs 750-Cr fund TVS Capital Funds has launched TVS Alts, targeting a Rs 750-crore private-credit fund to provide secured financing to Indian businesses, amid growing demand for alternative lending. TVS Capital Funds has launched TVS Alts, a private-credit platform targeting Rs 750 crore for its maiden fund, with a Rs 500-crore green-shoe option that could take the corpus to Rs 1,250 crore. TVS Capital expects domestic capital, including from insurance companies, bank treasuries and corporates. These are potential investors, not confirmed commitments. The proposed fund has been filed with the Securities and Exchange Board of India (SEBI) and awaits regulatory approval. TVS Alts plans secured loans of Rs 40 crore to Rs 100 crore to performing companies with sound credit profiles. Such loans are backed by collateral. The fund is targeting returns of about 17% and will support bridge financing, pre-IPO funding for companies preparing to list, and mergers and acquisitions across sectors. The investment team has assessed 42 opportunities, with two or three under consideration. It expects a first close within six months of regulatory approval and a final close within 12 to 14 months. Founded by Gopal Srinivasan in 2007, TVS Capital is a growth private-equity manager focused on financial services and technology. TVS Alts extends its activities from equity investment into lending. TVS Capital owns 90% of the new platform, with co-founder Shyam Srinivasan, Executive Chairman of TVS Alternatives, holding the remainder and spearheading the venture. Manish Makaria, previously with TVS Capital and SBI Funds Management, will serve as Managing Partner. Srinivasan said the fund would focus on companies with “sound credit profiles, strong underlying fundamentals and adequate security”. TVS Capital recently closed its fourth private-equity fund at nearly Rs 4,000 crore. The launch comes as private credit becomes an established alternative source of finance in India, although recent deployment has remained broadly steady. EY recorded $3.5 billion in investments across more than 100 Indian deals in the first half of 2026, compared with $3.4 billion in the second half of 2025. Domestic funds accounted for 74% of deal value, while transactions worth $10 million to $60 million made up 61%. Refinancing, holding-company funding and acquisitions were among the key uses. Recent fundraising also reflects growing competition. Kotak Alts closed its Rs 5,000-crore Yield and Growth Fund in September, backed entirely by domestic investors. Motilal Oswal Alternates announced a Rs 1,700-crore first close for its maiden private-credit fund in February. Ascertis Credit Fund IV crossed $700 million in commitments in October. Meanwhile, the regulatory framework is evolving alongside the market. SEBI amended its Alternative Investment Fund regulations in 2026. The Insolvency and Bankruptcy Code was also amended in April to address procedural delays and creditor-related processes, with the Insolvency and Bankruptcy Board of India subsequently consulting on changes to corporate insolvency resolution rules.
document fetched 2026-11-01 02:57