Chennai-based TVS Capital Funds successfully closed its extended fund raise — TVS Shriram Growth Fund 3 — on December 31, with an overall AUM of ₹1,550-crore blind pool and with potential co-investment pool of around ₹450 crore, the total AUM for the fund would stand at ₹2,000 crore.
“This marks TVS Capital Funds as the largest rupee-only capital fund, only through domestic sources, empowering next-gen entrepreneurs in India,” Gopal Srinivasan, Founder, TVS Capital Funds, told BusinessLine.
This is the first time in India that a fund of this size has been raised as a purely rupee-capital fund. This dispels the myth that India cannot raise large pools of capital. ₹2,000 crore is not large, and a $1-billion PE is the next step with all Indian capital, he said. “I believe this is the beginning of the change that it is possible to raise domestic funds from India,” he added.
Around 45 per cent of the corpus is from 35 leading family offices with individual contribution of ₹10 crore (excluding sponsors) — thus representing India’s Family Office Fund. Around 22 per cent is from DFIs and Insurance companies like SIDBI and NABARD; 26 per cent from UHNIs, including several professionals in various fields as ‘Friends of the Fund” and sponsors’ contribution being 7 per cent (TVS & Shriram Groups), he said.
The fund combines advantages of three sets of investor groups — discipline brought in by institutional investors; legacy and value from family offices, sophistication and proficiency from ‘Friends of the Fund’, who help sharpen the understanding in underwriting, he said.
In 2020, the TCF from 3rd Fund invested in GoDigit General Insurance Limited — ₹200 crore; DCB Bank — ₹50 crore and Leap India Private Limited. It exited from its previous Fund (Fund 2) in Indian Energy Exchange (2.3X) and National Stock Exchange (3.7X), said Srinivasan.