TVS Capital Funds has introduced the private lending platform TVS Alts, which aims to raise 750 crore rupees for its inaugural fund. There is a 'green shoe' option amounting to 500 crore rupees, potentially increasing the total capital raised to 1,250 crore rupees.
The primary capital is expected to come from domestic sources, including insurance companies, bank treasuries, and corporations; however, these are currently potential investors, not confirmed commitments. The proposed fund has been registered with the Securities and Exchange Board of India (SEBI) and awaits regulatory approval.
TVS Alts plans to provide secured loans ranging from 40 to 100 crore rupees to companies with strong credit profiles, backed by collateral. The fund targets a return of approximately 17% and will support syndicated financing (bridge financing), pre-IPO funding for companies preparing for listing, as well as mergers and acquisitions across various sectors.
The investment team has reviewed 42 opportunities, with two or three currently under consideration. The first closing phase of the fund is anticipated within six months of receiving regulatory approval, with final closure expected within 12–14 months.
TVS Capital, founded by Gopal Srinivasan in 2007, is a private equity management company specializing in financial services and technology. Through TVS Alts, the company is expanding its operations from equity investments to lending. TVS Capital owns 90% of the new platform, while the remaining stake belongs to co-founder Shyam Srinivasan, who serves as Executive Chairman of TVS Alternatives and leads this venture.
Manish Makaria, formerly with TVS Capital and SBI Funds Management, will take on the role of Managing Partner. Srinivasan noted that the fund will focus on companies possessing 'strong credit profiles, robust fundamentals, and sufficient collateral.'
Recently, TVS Capital completed the placement of its fourth private equity fund worth nearly 4,000 crore rupees. This initiative comes as private lending establishes itself as a stable alternative funding source in India, although recent utilization of funds has remained generally steady.
EY recorded $3.5 billion in investments across more than 100 Indian deals in the first half of 2026, compared to $3.4 billion in the second half of 2025. Domestic funds accounted for 74% of the total deal value, and transactions valued between $10 and $60 million comprised 61%.
Key areas of fund deployment include refinancing, holding company financing, and acquisitions. Recent fundraising campaigns also reflect growing competition: Kotak Alts closed its Yield and Growth fund at 5,000 crore rupees in September, fully supported by domestic investors. Motilal Oswal Alternates announced the first close of its private lending fund worth 1,700 crore rupees in February, and Ascertis Credit Fund IV exceeded $700 million in commitments in October.
Meanwhile, the regulatory framework is evolving in parallel with the market. SEBI amended its rules for alternative investment funds in 2026. Furthermore, the Insolvency and Bankruptcy Code was modified in April to eliminate procedural delays and creditor-related processes, after which the Insolvency and Bankruptcy Board of India provided guidance on changes to corporate insolvency resolution rules.
