TVS Capital Funds has launched TVS Alts, a new private credit platform that will target Rs 750 crore for its first fund. A green shoe option of Rs 500 crore could lift the total corpus to Rs 1,250 crore if demand allows.
The launch was announced on 31 October 2026. It marks TVS Capital Funds moving beyond private equity into lending, as the firm enters its twentieth year since it was founded in 2007 by Gopal Srinivasan.
The distinction matters for readers. The Rs 750 crore figure is a fundraising target, not money already raised or already lent. TVS Alts has received internal approvals and has filed applications with the Securities and Exchange Board of India, but regulatory approval is still awaited.
What TVS Alts will lend, and on what terms
TVS Alts will focus on secured lending to performing companies with sound credit profiles, strong underlying fundamentals and adequate security. The strategy will be sector agnostic, rather than tied to one industry.
Individual loans are planned in the range of Rs 40 crore to Rs 100 crore. The fund is targeting returns of about 16 to 17 per cent, a target that will depend on the quality of the borrowers it finds and on repayment.
The money is intended for bridge financing, pre-IPO financing and funding linked to mergers and acquisitions. Those are moments when a healthy company often needs capital quickly, before a larger transaction or a listing is completed.
Shyam Srinivasan, co-founder and executive chairman of TVS Alts, set out the lending discipline in a company statement that anchors the whole fund pitch.
We are clear about looking at performing credit. Our focus will be on companies with sound credit profiles, strong underlying fundamentals and adequate security.
TVS Capital Funds will own 90 per cent of TVS Alts, while Shyam Srinivasan will own the remaining 10 per cent. That split keeps the new platform inside the parent firm, while giving its leader a direct stake in the outcome.
The team behind the new platform
Shyam Srinivasan brings more than three decades in banking and financial services to the role. He spent 14 years as managing director and chief executive of Federal Bank, a tenure that TVS Capital Funds credits with expanding the bank and strengthening its asset quality.
Manish Makaria will serve as managing partner. He previously worked with TVS Capital Funds and subsequently with SBI Funds Management, a background that covers both private capital and large institutional fund management.
The board will include Prasad Gopalan, a former senior executive at the International Finance Corporation, banking veteran Ashutosh Khajuria, former SIDBI executive Mani Krishna Iyer and industrialist Srialalitha Gopal. The team as a whole covers commercial banking, private equity, investment banking and recovery work.
That experience matters because private credit is a judgement business. The lender must price risk, secure the loan properly and recover value if a borrower falters, and those skills are different from picking equity winners.
Why private credit, and why now
India’s private credit market is already a real funding channel, not a new experiment. EY tracked $3.5 billion across 102 deals in the first half of 2026, with domestic funds accounting for 74 per cent of deal value.
That domestic shift is the opening TVS Alts is aiming at. Like its equity business, the private credit strategy is expected to be built predominantly on domestic capital, with insurance companies, bank treasuries and corporates among the potential investors.
Those investors are not confirmed commitments yet. They are the audience TVS Alts will approach once regulatory approval arrives, and the first close will test whether that audience is ready to commit.
EY put Indian private credit assets under management at $25 billion to $30 billion as of March 2025, against about $1.4 trillion in the United States. The gap shows both the headroom and the distance still to travel.
A parent firm with capital already behind it
TVS Capital Funds is not starting from scratch. As of June 2025, the firm said it managed about Rs 5,000 crore across its third and fourth funds, with a portfolio of more than 35 businesses and 28 successful exits.
Its fourth fund alone closed at Rs 3,535 crore in June 2025, its largest rupee fund to date. Portfolio companies named in connection with that fund include Go Digit, Insurance Dekho, Yubi, Vivriti Capital and Leap Solutions.
That history gives TVS Alts a network of founders and companies to draw on. It also raises the bar, because borrowers will judge the new lender against the parent firm’s long record in equity investing.
What still has to happen before any loan is made
TVS Alts aims to complete its first close within six months of receiving regulatory approval, and its final close within 12 to 14 months. Active deal origination will begin only after the requisite approvals are in place.
The team has already evaluated 42 potential opportunities, of which two or three are currently being considered against its underwriting and pricing requirements. That pipeline is a starting point, not a signed loan book.
Over the life of the fund, TVS Alts plans about 14 to 15 investments. With ticket sizes of Rs 40 crore to Rs 100 crore, even a small number of weak credits could weigh on returns, which is why the performing credit focus is central to the pitch.
If approval comes in the coming weeks as expected, the next proof points will be the size of the first close and the quality of the first loans.
Until then, TVS Alts is a well staffed plan with a clear target, and the market will judge it on money committed and loans repaid.
