‘We come in after the way of the business model has been somewhat accepted. As a result, our businesses tend to be very long term in nature.’
We are helping some of the companies with bridge liquidity to overcome a two year gap in our mind, says Gopal Srinivasan, Founder, Chairman & MD, TVS Capital Funds.
You have expertise in identifying small and good businesses and the ability to find companies which can scale up. In the post Covid scenario, where do you think there is opportunity? Which are the businesses that are still small and young with the potential to scale up?
Private equity is all about how the individual firm performs much more than macros. In our firm, we have been through two previous crises before this. It was the global financial crisis when we started the fund. The latest crisis is also a human tragedy. Our focus right now is not on specific sectors, it is more on the liquidity needs of companies.
We have very long experience in investing in the financial services sector. We are looking at the MSME lending space and consumer lending space very closely and finding great companies with fabulous managements, unique business models which are small — may be Rs 1,000-1,500 crore books even. We are seeing whether we could get in and work with them to overcome the so-called chasm of the next two years and fly with them to the other side with our experience and our capital. That is one sector in which we are looking at a lot of opportunities. That is one area we are very deeply interested in and have several opportunities in.