TVS Capital Launches Private Credit Platform Targeting Rs 1,250 Crore

TVS Capital Funds has launched a new private-credit platform, TVS Alts, seeking to raise Rs 750 crore for its inaugural fund. The offering includes a green-shoe option of Rs 500 crore, potentially increasing the total corpus to Rs 1,250 crore. The proposal is currently pending approval from the Securities and Exchange Board of India (SEBI).

February 2025

Motilal Oswal Alternates announced a first close of Rs 1,700 crore for its own debut private-credit fund, highlighting the increasing competition in the Indian credit market.

April 2026

The Insolvency and Bankruptcy Code underwent amendments to address procedural delays and creditor processes, part of a broader shift in the regulatory environment for alternative investment funds.

First Half of 2026

Data from EY indicated that private credit remains a stable source of finance in India. Investments totaled $3.5 billion across more than 100 deals during this period, with domestic funds contributing 74% of the total deal value.

September 2026

Kotak Alts closed its Rs 5,000-crore Yield and Growth Fund, which was backed entirely by domestic investors, further signaling market activity.

Future Outlook

TVS Alts plans to provide secured loans ranging from Rs 40 crore to Rs 100 crore to companies with solid credit histories. The firm targets returns of approximately 17% to support bridge financing, pre-IPO funding, and mergers and acquisitions. TVS Capital, founded in 2007, holds a 90% stake in the new platform. Co-founder Shyam Srinivasan holds the remaining interest and will lead the venture, while Manish Makaria has been appointed as Managing Partner. The team expects a first close within six months of receiving regulatory approval, followed by a final close within 12 to 14 months.