Last year, Tata Capital formed a private equity fund jointly with Japan’s Mizuho Securities to invest in unlisted Indian companies, with a target of raising $1bn by December 2011.
Tata Capital’s managing director and chief executive Praveen Kadle said nearly 40% of the funds raised so far came from Japanese institutional investors, while about $220m was sourced from Indian institutional investors. The rest came from South-East Asia and Europe.
"So far, Tata Capital has invested $150m across six deals, Kadle said. It is looking to make investments in information technology, engineering, healthcare and education sectors.
"The sweet spot, or optimal average ticket size of investment, would be around $25m each, and investments would be capped at $75m," Kadle added.
According to the Bain report, about 120 private equity funds in India want to spend $34bn in 2011, intensifying competition for the limited number of deals available and pushing up valuations.
