TVS Capital hits first close of ₹832 crore for third fund

TVS Capital’s Gopal Srinivasan and former Hindustan Unilever CFO D. Sundaram have invested over 200 crore in TVS Shriram Growth Fund 3.

Mumbai: Home-grown private equity fund manager TVS Capital Funds Pvt. Ltd on Monday said it has made a first close of  832 crore (approx $114 million) for its latest fund TVS Shriram Growth Fund 3. The fund is jointly sponsored by the TVS group and the Shriram group.

TVS Capital Funds is led by Gopal Srinivasan, a third generation entrepreneur from the TVS group and D. Sundaram, former vice-chairman and chief financial officer of Hindustan Unilever Ltd. The sponsors have invested over  200 crore in the fund, a statement from the fund said.

With the first close of its third fund, the total capital raised by TVS Capital has exceeded  2,000 crore, the statement said. TVS Capital raised its first fund of  600 crore in 2009, followed by a second of  600 crore in 2012.

TVS Capital has invested in companies such as National Stock Exchange of India Ltd, Indian Energy Exchange Ltd, RBL Bank Ltd, City Union Bank Ltd, Wonderla Holidays Ltd and

The commitments for the first close of the latest fund are entirely from local investors.

“We prefer not to raise capital from foreign investors. We have a harmonious set of family offices and institutional investors who understand India well,” said Srinivasan, adding that the firm has raised around  500 crore from family offices and ultra high net-worth individuals (UHNI).

The strong interest from family offices was because of the co-investment programme, which entitles these family offices to invest directly into companies, alongside the fund, said Srinivasan.

“They are very keen on co-investments. They have taken an intent of co-investing  400 crore alongside the fund. Co-investments are becoming important,” he said.

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