Money & Banking

Buyout PE fund TIW plans to raise $100 m

Bengaluru | Updated on February 17, 2019 Published on February 17, 2019

TIW Private Equity, Ralhan said, is a sector agnostic buyout private equity fund which makes equity and equity-linked investments typically in India-based RoE positive sectors via buyouts

TIW Private Equity, a buyout fund, plans to raise another $100 million as part of its next series.

Mohit Ralhan, Managing Partner and CIO of the private equity fund, told BusinessLine that the focus of the fund is to help SME players.

“The SME segment continues to generate a high level of employment but some of them end up with debt and successions issues,” Ralhan said.

Minimal market risk

TIW Private Equity, Ralhan said, is a sector agnostic buyout private equity fund which makes equity and equity-linked investments typically in India-based RoE positive sectors via buyouts.

“We prefer investing with first-generation entrepreneurs who have higher passion and energy to scale organisations and drive exponential growth. We like taking minimal market risk and prefer execution risk in strong macroeconomic/sectoral themes,” he pointed out.

He said their PE Fund brings in fresh capital to revive these companies and till now they have funded about eight such companies.

Some of the companies the fund has invested include, an FMCG company and a testing lab. Its portfolio companies include Kaunis Marketing Services which works with international beauty brands to create and execute an India-entry strategy for its products, including research, marketing and distribution in the country. Plovio Value Chain Solutions is another company in which TIW has invested in. It works in the area of supply chain disintermediation, leveraging its knowledge of capital management and network partners to create margin aggregation opportunities.

Adoption risk

Ralhan who previously worked with Baring Private Equity Partners India Fund II and III, said that TWI has so cumulatively raised around ₹ 450 crore out of the ₹500-crore fund from multiple rounds.

The PE Fund typically raises funds every 18 months through series and sub-series rounds and stays invested in the company for about three to five years.

The funding exposure is between $4 million to $8 million for each company. It expects to deploy the entire tranche of funds by 2023 and plans to raise another round sometime next year for about $100 million.

Ralhan said his fund is not keen on investing in taking on adoption risk which most of the venture funds do. “We are keen on investing in old economy companies or those which are past adoption risk and that is why we are different from the venture fund,” he said.

Published on February 17, 2019
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