Tata targets $600m for second opportunities fund
Tata Capital is looking to raise $600 million for the second Tata Opportunities Fund, a private equity vehicle that invests in Tata group entities as well as other independent Indian businesses.
The target was confirmed by a source familiar with the situation. Tata Opportunities Fund I spent approximately two years in the market before closing at $600 million in May 2013, having originally set out to raise $1 billion. Nevertheless, it was at the time one of the largest-ever debut funds with an India mandate.
There were fewer than 10 LPs in the vehicle, comprising sovereign investors, financial institutions, global corporates and high net worth families from North America, Asia and the Middle East. The investors are said to include Japan Bank of International Cooperation and Korea Investment Corporation (KIC).
The Tata Opportunities Fund team makes growth capital and buyout investments, typically in the range of $30-200 million, and mobilizes co-investment for the larger transactions. In addition to capital, portfolio companies benefit from exposure to the Tata Group’s global network and industry best practices.
The Fund I portfolio includes: budget hotel operator Ginger Hotels, satellite television provider Tata Sky, auto parts maker Varroc Engineering, housing developer Shriram Properties, logistics operator TVS Logistics, engineering construction company Tata Projects, microfinance business Fincare, and Uber. The Uber investment was the fund’s first in a company headquartered outside India.
Tata Capital also manages funds focusing on growth capital investment, early-stage deals, healthcare, and special situations. The firm is reportedly also raising its second growth and healthcare funds. The first vehicles in these series closed at $240 million and $75 million, respectively.
More on South Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.