A new credit pool for growing companies

Chennai-based TVS Capital Funds has entered private credit with the launch of TVS Alts, a new platform that will raise a dedicated fund for secured lending to performing companies, a growing corner of startup funding in India. The move extends the firm beyond private equity into debt for companies that are already working.

The proposed fund will target an initial corpus of ₹750 crore, with a green-shoe option of ₹500 crore. TVS Alts has received internal approvals and has filed applications with the Securities and Exchange Board of India (SEBI), with regulatory approvals expected in the coming weeks. Active deal origination begins once those approvals land, with a first close targeted within six months of approval and a final close within 12–14 months.

Shyam Srinivasan, Executive Chairman of TVS Alternatives and a co-founder of the new platform, will spearhead its development. TVS Capital Funds holds a 90 per cent stake in the platform, with the remaining 10 per cent held by Shyam Srinivasan. Manish Makaria, formerly with TVS Capital Funds and SBI Funds Management, will serve as Managing Partner, and the board includes Prasad Gopalan, Ashutosh Khajuria, Mani Krishna Iyer and Srialalitha Gopal.

The fund will be sector-agnostic, covering bridge financing, pre-IPO financing and M&A-related funding. Individual ticket sizes will range from ₹40 crore to ₹100 crore, with targeted returns of around 17 per cent. The focus, in Srinivasan's words, is companies with sound credit profiles, strong fundamentals and adequate security — “governed like a bank, structured like a fund, run like a business”. The team has already evaluated 42 potential opportunities, with two or three under consideration, and expects roughly 14–15 investments over the fund's life.

The strategy will be built predominantly on domestic capital, with insurance companies, bank treasuries and corporates expected among investors. The launch follows TVS Capital Funds' recent close of its fourth private equity fund at nearly ₹4,000 crore, a reminder that India's growth-stage capital stack is broadening well beyond venture equity.

Why it matters for founders

Private credit is becoming a real option for founders who have revenue and collateral but do not want to dilute further. If your company is performing and needs growth, bridge or pre-IPO capital, funds like TVS Alts are worth tracking alongside your equity options — but expect bank-grade underwriting, not venture-style bets on potential.