TVS Capital Funds Ltd, the Chennai-based private equity firm that manages TVS Shriram Growth Fund-I, will raise a ‘top up fund' of around Rs 500 crore, according to Chairman and Managing Director, Mr Gopal Srinivasan.

The top-up amount is for Fund 1 of Rs 600 crore, which was raised three yeas ago, and will mostly come from domestic institutions and high net worth individuals (HNI). Nearly 600 HNIs have invested in Fund I and, “I would be happy if they invest in the top-up fund also,” he told Business Line .

Typically, a HNI invests over Rs 25 lakh, he said.

Mr Srinivasan expects to close the top-up fund by December.

Of the Rs 600 crore that the Fund I raised so far, nearly 80 per cent of it has been invested in nine companies in sectors that include social infrastructure – privatised higher education and health care delivery; physical infrastructure – housing; specialty retail; and processed foods and agri business.

The top fund will continue to invest in the same sectors that have “a significant potential to grow in the next 10 years,” he said.

Typically, the company invests between Rs 25 crore and Rs 75 crore, and stays with the portfolio company for five to six years till exit options such as an IPO or acquisition appear.

Some of the investments made by the fund include Cookery Private Ltd promoted by Master Chef, Mr Sanjeev Kapoor, and Better Value Brands Private; Om Pizzas & Eats; Mediplus Health Services; Medfort Hospitals and Dusters Hospitality.

Mr Srinivasan said it took nearly three years to invest the Rs 600-crore Fund I. However, the top-up fund will take lesser time because “we have a good pipeline to invest.”

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