Tata Capital ties up $800mn for its PE ventures

Tata Capital Ltd, a wholly-owned subsidiary of the Rs3 lakh crore Tata Sons, on Wednesday said it has already tied up $800 million from domestic and overseas institutional investors for its family of five private equity funds. Last year, the company had said it would raise $1 billion for these its private equity funds by December 2011.

The five funds are Tata Capital Growth Fund, and the Tata Opportunities Fund, a special situations fund, an innovation fund and a healthcare fund.

It has tied up the amount in just six months of hitting the street and expects to make a final close well within the targeted deadline of December this year.

Nearly 40 per cent of the funds raised so far came from Japanese institutional investors, while about $220 million was sourced from Indian institutional investors, Tata Capital's managing director and chief executive Praveen Kadle, said at a briefing in Mumbai on Wednesday. The rest came from South-East Asia and Europe, he said.

Kadle said the funds would invest across stages - early stage, growth stage, expansion stage and even stressed assets.

It would look at investing in the design and engineering services related to high-value information technology services, healthcare, education, manufacturing and auto components, logistics support and low-cost housing, but will not invest in real estate and infrastructure. The deployment will be staggered over the next three-five years.