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TVS Capital closes Growth Fund III with AUM of INR 1,550 crore

TVS Capital Fund

Source: The Economic Times

TVS Capital Funds is a home-grown India-based capital investment company that has recently announced to close its Growth Fund III with an investment of INR 450 crore which took the overall Asset Under Management (AUM) to over INR 1,550 crore or USD 205 million.

Founded back in 2007, the company focuses on providing investment opportunities to entrepreneurs and is dedicated to building a sustainable business which can define India’s growth in the investment ecosystem.

TVS Capital has made a final closure on its Growth Fund III on the high demand of institutional investors, according to a report by VC Circle. The first stage of the Growth Fund III was concluded in October, two years ago in 2018. With the latest closure, KL Mani, Senior Advisor, TVS Capital Funds says that the company has raised total Asset Under Management (AUM) for the growth fund to INR 1,550 crore and with a potential co-investment of INR 450 crore, the total AUM fund could go up to INR 2,000 crore i.e., USD 272 million.

He further added that these figures make TVS Capital Fund the largest Capital fund that operates through domestic sources.

Existing investors in the TVS Capital Growth Fund include SBI Life, NABARD, New India Assurance, Bajaj Alliance, SIDBI and HDFC Life. Other than these, Development Finance Institutions (DFIs) also took part in the funding pool and accounted for a total of 22% of the fund, as mentioned in the report by VC Circle.

Moreover, this funding is raising the bar for India because this is the first time when a fund of this size is raised completely as Rupee-Capital. As several investors in India believe that Indian start-ups and entrepreneurs need not look for foreign investments or look out for international investors, the Indian market has a deeper penetration capacity of raising large pools of funds. TVS Capital’s INR 1,550 crore AUM is the latest example to support this claim.

According to a report by The Hindu Business Line, 45% of the corpus amount is raised from over 35 leading family offices and HNI’s with an individual contribution of INR 10 crore which excludes sponsorships. DFI’s and insurance companies including SIDBI, NABARD and SBI Life among other investors account for over 22% contribution. Other than this, TVS and Shriram Groups including other professionals in the field account for 7% contribution in the raised corpus amount.

Other professionals in the list of growth fund investors include Lakshmi Narayana, Kris Gopalakrishnan, N Chandrasekaran and Krishnakumar Natarajan.

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