Tata Capital raises $800 mn for PE fund

Tata Capital Ltd, a wholly-owned subsidiary of Tata Sons, today said it had raised $800 million (Rs 3,570 crore)for its private equity fund. The company had, last year, said it would raise $1 billion for its private equity fund by December 2011.

“We had already raised $800 million till March 2011, against our target of raising $1 billion for the private equity fund by December 2011,” said Managing Director and Chief Executive Officer Praveen Kadle. Of the $800 million, $220 million was raised from domestic banks and financial institutions and $580 million, from international investors. The company has not yet approached US investors.

“Once we get $1 billion from quality investors, we may go beyond that figure, since we had already raised 80 per cent by March,” he said. Kadle added the company had invested $150 million and plans to make the balance of investments over the next three to five-years. It is also looking at a return on equity of about 18 per cent. So far, the company has put money into six companies, two of which are Tata Group companies and the rest from outside the group. It has invested $30 million in Tata Technologies.