Tata Group investment firm Tata Capital on Wednesday announced that it has raised $800 million (Rs 3,500 crore) for its private equity funds and is looking at 50 to 60 investment opportunities.
“We have already raised $800 million till March 2011, against our target of raising $ 1 billion (Rs 4460 crore) for private equity funds by December 2011,” said Praveen Kadle, managing director and chief executive officer of Tata Capital.
“Of the $800 million, $220 million (Rs 980 crore) is from domestic institutions and $580 million (Rs 2,590 crore) from foreign institutional investors,” he said.
Last year the company had announced it would raise around $1 billion by December 2011.Around 40% of the funds raised so far has come from Japanese institutional investors and the rest from South-East Asia, Europe and India, Kadle said.
Tata Capital has already invested $150 million (Rs 670 crore) in six companies with an average investment size of $25 million. It plans to make the balance of investments over the next three to five years and is looking at a return on equity of about 18%.
Of the six companies, two are Tata Group companies. “Of the $150 million, 11% has been invested in the engineering sector, 12% in autos, 21% in information technology and IT-related, 48% in consumer and 8% in healthcare,” said Kadle. He did not reveal the names and investment related financial details about the target companies.
He said the company would avoid real estate and infrastructure in its investments.