Chennai, 31 October 2026: TVS Capital Funds (TCF), one of India's marquee investment firms, has entered the private credit market with the launch of TVS Alts, marking a strategic expansion beyond its established private equity business.

Founded in 2007 by visionary entrepreneur and investor, Gopal Srinivasan, TVS Capital Funds, has built a strong presence in India's growth private equity landscape. Building on this legacy, TCF has launched TVS Alts with Shyam Srinivasan, Executive Chairman of TVS Alternatives and Senior Advisor and Operating Partner at TVS Capital Funds, as one of the founders of the new platform. He will spearhead its development, bringing his extensive experience across banking and financial services to guide its entry into the private credit market.

Elaborating on the investment philosophy and approach of TVS Alts, Shyam Srinivasan, Co-founder and Executive Chairman of TVS Alternatives, said, “We are clear about looking at performing credit. Our focus will be on companies with sound credit profiles, strong underlying fundamentals and adequate security. We intend to maintain stringent underwriting standards and remain disciplined in our approach to credit quality and pricing. The proposed fund will adopt a sector-agnostic approach, addressing a range of financing requirements, including bridge financing, pre-IPO financing and M&A-related funding. Our philosophy is simple: 'Governed like a bank, structured like a fund, run like a business, trusted like no other.”

TVS Alts has received internal approvals and has filed applications with the Securities and Exchange Board of India (SEBI), and expects to receive the requisite regulatory approvals in the coming weeks. The proposed fund will target an initial corpus of ₹750 crore, with a green-shoe option of ₹500 crore.

The fund will focus on secured lending to performing companies, with individual ticket sizes ranging from ₹40 crore to ₹100 crore and targeted returns in the range of 17 per cent. Its sector-agnostic investment strategy will cover a range of financing requirements, including bridge financing, pre-IPO financing and M&A-related funding. The focus will remain on businesses with sound credit profiles and adequate security.

Similar to TVS Capital Funds' approach to building its private equity business, the private credit strategy will also be built predominantly on domestic capital. Potential investors are expected to include insurance companies, bank treasuries and corporates looking to diversify their portfolios.

The investment team has already evaluated 42 potential opportunities, of which two or three are currently being considered against the fund's underwriting and pricing requirements. Active deal origination will begin following the receipt of the requisite regulatory approvals. TVS Alts aims to complete its first close within six months of receiving regulatory approval and expects to achieve its final close within 12–14 months.

The platform's core team brings collective experience across commercial banking, private equity, investment banking and recovery. Manish Makaria, who previously worked with TVS Capital Funds and subsequently with SBI Funds Management, will serve as Managing Partner.

The Board of TVS Alts will include Prasad Gopalan, former senior executive at the International Finance Corporation (IFC); banking veteran Ashutosh Khajuria, former SIDBI executive Mani Krishna Iyer; and industrialist Srialalitha Gopal. 

Commenting on the opportunity in India's private credit market, Srinivasan said, “Credit quality in India, particularly in the mid-market segment, is holding out well. We believe the private credit market has significant potential, particularly as banks become more selective in their lending to mid-sized businesses. This creates an opportunity for alternative credit platforms to address the financing requirements of fundamentally sound companies. We see this as a long-term opportunity and expect the initial fund to make approximately 14–15 investments over its life. As the strategy gains traction, we will also explore opportunities to raise additional private credit funds over the next three to five years."

The launch of TVS Alts also reflects TCF's broader ambition to explore opportunities across multiple financial services verticals, including wealth management, asset management and other adjacent areas over the long term. This comes as TVS Capital Funds has recently closed its fourth private equity fund with a corpus of nearly ₹4,000 crore.

TVS Alts is a subsidiary of TVS Capital Funds, which holds a 90 per cent stake in the platform, with the remaining 10 per cent held by Shyam Srinivasan. The launch marks an important step in TCF's evolution, expanding its presence across investment strategies and strengthening its ambition to build a broader financial services platform over the coming years.