# TVS Capital Enters Private Credit With ₹750 Crore TVS Alts Fund and ₹500 Crore Green-Shoe

> TVS Capital Funds launched TVS Alts, a ₹750 crore private credit fund with a ₹500 crore green-shoe option.

- Published: 2026-10-31T03:50:23+00:00
- Section: Funding
- Author: News Desk
- URL: https://newsforagent.com/news/2026-10-31/tvs-capital-private-credit-tvs-alts
- Source: [BusinessLine](https://www.thehindubusinessline.com/money-and-banking/tvs-capital-forays-into-private-credit-looks-to-back-performing-mid-market-firms/article71644623.ece)

## Key takeaways

- TVS Capital Funds launched TVS Alts, a Category II AIF targeting a ₹750 crore initial fund with a ₹500 crore green-shoe option.
- TVS Alts will lend ₹40-100 crore per deal to performing mid-market companies and targets 16-17% returns.
- Shyam Srinivasan, Co-founder and Executive Chairman of TVS Alternatives, said the team has evaluated 42 potential opportunities, with two or three under consideration.

TVS Capital Funds has launched TVS Alts, a private credit fund targeting ₹750 crore with a green-shoe option of ₹500 crore, as the firm enters its 20th year. [BusinessLine](https://www.thehindubusinessline.com/money-and-banking/tvs-capital-forays-into-private-credit-looks-to-back-performing-mid-market-firms/article71644623.ece) reported the launch on October 31, 2026.

## TVS Alts Targets Secured Mid-Market Lending

TVS Alts has received internal approvals for a Category II Alternative Investment Fund and has filed applications with the Securities and Exchange Board of India, expecting regulatory approvals in the coming weeks. "We are initially targeting a fund of ₹750 crore with a green-shoe option of ₹500 crore. It will focus on secured lending to companies with ticket sizes of ₹40-100 crore and we are targetting returns in the range of 16-17 per cent," Shyam Srinivasan, Co-founder and Executive Chairman of TVS Alternatives, told BusinessLine.

The strategy is sector-agnostic and will back performing companies with sound credit profiles and adequate security, according to Srinivasan. The fund will consider bridge financing, pre-IPO financing and M&A-related funding. TVS Alts hopes to complete its first close within six months of receiving regulatory approval and a final close within 12-14 months.

Srinivasan said the investment team has evaluated 42 potential opportunities, with two or three currently being considered against its underwriting and pricing requirements. Active deal origination will begin after regulatory approvals. The initial fund is expected to make around 14-15 investments over its life, and TVS Capital could raise additional private credit funds over the next three to five years.

Manish Makaria is Managing Partner of TVS Alts. Its board includes Prasad Gopalan of IFC, banking veteran Ashutosh Khajuria, former SIDBI executive Mani Krishna Iyer and industrialist Srilalitha Gopal. TVS Capital owns 90 per cent of TVS Alts and Shyam Srinivasan owns the remaining 10 per cent. The firm recently closed its fourth private equity fund with a corpus of nearly ₹4,000 crore.

## TVS Capital's Manufacturing and Deeptech Push

In October 2026, TVS Capital Funds said it expects to make at least six investments across deeptech and manufacturing from its latest fund, with managing partner Krishna Ramachandran planning two to three deeptech investments and the same number in manufacturing, plus a couple more in financial services, Company Business News (Mint) reported. In July 2026, the firm said it was sharpening its investment thesis toward manufacturing sectors including precision manufacturing, electronic components for space and defence, smart meters, grid modernisation and specialty vehicles, BusinessLine reported.

## Tree Line's $680 Million Continuation Vehicle

Tree Line Capital Partners closed a $680 million private credit continuation vehicle on October 28, 2026, with PGIM and LGT Capital Partners as co-lead investors, [Alternative Credit Investor](https://alternativecreditinvestor.com/2026/10/28/tree-line-closes-680m-continuation-vehicle/) reported. The vehicle provides liquidity to existing investors and manages a portfolio of senior secured loans to more than 60 US lower middle-market companies. PGIM plans to deploy up to $1 billion in private credit secondaries over two years.

## Companies in this story

- TVS Capital Funds · website: http://www.tvscapital.in

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