TVS Cap to float Rs 1,000-cr fund

Prasad Gadkari, who was with IDFC PE earlier will be heading the new fund

TVS Capital Funds is planning to launch its third fund of Rs 800-1,000 crore. Prasad Gadkari, 39, who was with IDFC PE earlier will be heading the new fund.

"I thought this will be correct thing to do. Funds are of 10-year life cycle and we thought it will be appropriate to bring new young talent," said TVS Capital's founder, chairman and managing director, Gopal Srinivasan.

TVS Capital will look at the healthcare space also through the new fund. Gadkari was involved in three health care investments, including large corporates deals such as Manipal Hospitals. He has also been on the board of HealthCare Global and Medi Assist, which he would like to leverage upon.

Till now, the focus has been retail, education, agriculture, consumer goods, media & entertainment, and facilities management.

Srinivasan hopes to close the fund-raising activities fully by June 2018. He brings a mix of industry and financial-sector experience from institutions such as IDFC, GE, Larsen & Toubro where he has worked in the past two decades. TVS Capital's sponsors are TVS Group and Shriram Group.

TVS Growth Fund 1A has fully invested its Rs 585 crore, while the 1B final investment of Rs 30-35 crore, of its Rs 586 crore, is in the pipeline and will be completed by February 2017.

In Fund 1A, the fund exited from five portfolio companies with more than 2x of the capital invested. In Fund 1B, it has exited from one investment with more than 3x of the capital invested.

Existing funds are managed by both Srinivasan and D Sundaram, vice-chairman and managing director.