Tata Capital's private equity fund, Tata Opportunity fund, has made an investment of $150 million (Rs 670 crore) in six investee companies, two from the Tata group (including Tata Technologies) and four from outside. The company is already in the process of evaluating other investment opportunities.
“We usually screen about 20 prospects before selecting one investee company,” said Mr Praveen Kadle, MD&CEO Tata Capital. The company has an average ticket size of $25 million (Rs 112 crore) in its investee companies.” We plan to better the 18 per cent returns that Indian investors expect and plan to remain invested over a seven-to-10 year horizon,” said Mr Kadle.
Mobilised funds
Tata Capital has raised 80 per cent or $800 million out of its $1 billion AUM (Rs 4,469 crore) target across various PE funds such as Tata Capital Growth Fund and Tata Opportunities Fund from Indian and foreign investors. Out of this $580 million has been raised from overseas, with Japan contributing $320 billion or 40 per cent of the total corpus raised. Investors from South East Asia and Europe have contributed the remaining $ 260 million. Domestic investors — mainly banks and financial institutions — have committed $ 220 million to this fund as on date.
The remaining funds would be invested in various companies over the next three years in sectors such as high value design and engineering services, education, healthcare, discrete manufacturing, low-cost housing and logistics support.