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.

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