Tata Opportunities Fund, the private equity fund run by Tata Group subsidiary, Tata Capital, and which recently came into news for its investment into Uber, is looking to raise as much as $600 Million next year, reports Mint.
Padmanabh Sinha, managing partner at TOF, tells Mint,
We are seeing a good deal pipeline and we will be able to deploy our existing fund by the end of this financial year after which we will raise a successor fund of similar size,
TOF has till date, invested mostly in Tata’s own firms, with Uber being its lone foreign investment this year. TOF generally invests in late-stage deals, where the firm sees guaranteed returns on a longer timeframe.
Of the $600 million corpus in the present fund, $400 million has been invested across six deals. Sources within the Uber told us, that the firm had invested close to $75-$100 Million into Uber this year.
The fund, next year, will also have the option of co-investment by limited partners in large sized deal, Sinha further told Mint. Limited partners are those who invest in a private equity fund. In a co-investment, limited partners will invest alongside the fund.
We will invest with a similar strategy, and all our transactions have been sourced on a proprietary basis unlike other funds. We are part of the flagship fund and we have the ability to source good deals
The fund typically invests $50-200 million per transaction and is expecting an internal rate of return of over 20% from its investments. TOF is in turn promoted and advised by Tata Capital.