ADB makes $10m equity investment in Tata Capital to support SMEs in India
TCGF II is a private equity fund targeting growth capital investments in middle-market companies in India, including small and medium-sized enterprises (SMEs).
The Asian Development Bank (ADB) has made a $10 million equity investment in Tata Capital Growth Fund II LP (TCGF II). TCGF II is a private equity fund targeting growth capital investments in middle-market companies in India, including small and medium-sized enterprises (SMEs).
TCGF II aims to invest in a portfolio of between 8 and 10 companies in sectors including financial services, health care, manufacturing, and technology. The fund’s investment sizes are expected to average between $10 million and $35 million. The fund manager, Tata Capital Limited, has agreed to take steps to promote gender equality through TCGF II’s investment activities.
“Private equity has emerged as a critical source of growth capital for Indian companies and SMEs, which play a vital role in the country’s economic development,” said ADB Private Sector Investment Funds and Special Initiatives Division Director Janette Hall. “ADB is pleased to work with Tata Capital to support India’s SME segment, promote gender equality and governance best practices in investee companies, and also to promote private equity as a funding option.”
TCGF II is sponsored and managed by Tata Capital Limited, a subsidiary of Tata Sons Limited, the flagship company of the Tata Group. Founded in 1868, the Tata Group is the largest business conglomerate in India. It comprised of more than 100 companies, operating in over 40 industry sectors, across 6 continents, and in over 80 countries.