TVS Capital Funds (TCF) has closed a third and rupee-only capital fund. The company is backed by domestic investors, family offices, HNIs including tech veterans and insurance companies, with total Assets Under Management (AUM) of Rs 2,000 crore.
Gopal Srinivasan, chairman, TVS Capital Funds, said that the fund successfully closed its extended fund raising on December 31, 2020 with an overall AUM of Rs 1,550 crore blind pool and with a potential co-investment pool of Rs 450 crore, and that the total AUM for the fund would stand at Rs 2,000 crore.
This would be 3X – 3.5X of the corpus of its earlier fund. During Covid times, the fund mobilised Rs 300 crore.
Around 45 per cent came from 35 leading family offices with individual contributions of Rs 10 crore to Rs 75 crore, thus representing India's Family Office Fund.
"We value this even more as family offices seek capital returns to support other entrepreneurs in their journey," he said.
DFIs and insurance companies, including SIDBI, NABARD, HDFC Life, SBI Life, Bajaj Allianz, New India Assurance among others, contributed 22 per cent of the fund, while 26 per cent of the commitments come from UHNIs, which include several professionals in various fields as Friends of the Fund.
Sponsors, including TVS Group and Shriram Group, contributed 7 per cent.
Some of the veterans from the tech space including Infy's Kris Gopalakrishnan, Lakshminarayanan (Cognizant), Natarajan (Mindtree), as well as several SaaS and consumer-tech startup founders have also invested in the fund.
"The fund has the combined advantage of the discipline brought in by institutional investors, legacy and value from the family offices, sophistication and proficiency from Friends of the Fund who help sharpen our understanding in underwriting," said Srinivasan.
The sweet spot for the third fund would be around Rs 125-150 crore as compared to around Rs 60-65 crore in the previous fund.
From the third fund, TCF has already invested Rs 200 crore in GoDigit General Insurance Limited, Rs 50 crore in DCB Bank and in Leap India Private Limited.
TVS Capital said that it would now start raising Fund 4 in end 2022, which could be around $500 million.
TVS Capital funds is one of the pioneers of mid-market PE investments in India. It was founded by Gopal Srinivasan, a third-generation entrepreneur of the TVS Family, in 2007. TVS Capital manages around Rs 2,000 crore in AUM across three funds, with the first fund Launched in 2007. It is currently investing out of its third fund. The sponsors include TVS Group and Shriram Group.