Tata Capital's PE fund raises Rs 1,250 cr to invest in urbanisation, others

Tata Capital

Tata Capital on Monday announced it has raised Rs 1,250 crore for a private equity fund which will be investing in areas including urbanisation and manufacturing.

It announced the final closure of the Rs 1,250 crore Tata Capital Growth Fund II, which is a successor to a similar fund.

The fund has both newer and existing investors, which include global and European fund of funds, Japanese institutions and a leading Asian development finance institution, a statement said.

The investment strategy for the new fund will be the same as in the first fund, it said, adding that the investments will be made in three identified themes.

These include strategic services, urbanization and discrete manufacturing in continuation of the earlier strategy, it said.

Tata Capital Growth Fund's managing partner Akhil Awasthi said a stable team, improving underlying economic fundamentals, imminent release of a vaccine and quality of the current portfolio that Tata Capital Growth Fund II has built till date inspires confidence that the Fund will continue to identify and invest in industry leading companies.

New fund raising activity has been impacted by the pandemic, as the economy struggled because of the lockdowns and other restrictions. According to EY, a consultancy firm, there was a 31 per cent dip in new fund raises by value for January-November 2020 at USD 5.9 billion.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel