Tata Capital’s PE fund raises Rs 955 crore to be invested in pharma, healthcare sectors

New Delhi, Mar 28 (PTI) :Tata Capital on Monday announced a Rs 955 crore fundraise by a private equity arm for investing in healthcare companies. The Tata Capital Healthcare Fund II (TCHF II) achieved a final closure of its fund with investor commitments of Rs 955 crore or USD 126 million, a statement by Tata Capital said.

The offering is a follow-up to the Tata Capital Healthcare Fund I which had raised Rs 411 crore in 2012. The second fund has garnered commitments from domestic and international financial and strategic institutions including some of the global pharma, medical equipment companies, development financial institutions and large European institutions, it said, adding Government of India has also committed money through the Self Reliant India fund.

TCHF II will principally be taking equity positions in healthcare and life sciences related companies having significant business exposure to India, its managing partner Visalakshi Chandramouli said.About 60 per cent of the new fund’s bets will be focused on the theme of domestic healthcare and life sciences consumption, while the rest will be devoted to companies focused on healthcare and life sciences competency through delivering products or services to the world markets, Chandramouli elaborated.

The new fund has already committed money to three companies namely Linux Pharma (domestic pharma formulations), Atulaya Healthcare (diagnostic services) and Deeptek Inc (digital health), and expects to announce the fourth investment shortly, its partner Vamesh Chovatia added. It has a pipeline of deals and is expected to continue the deal momentum in the coming months, Chovatia said, adding, it is typically looking at committing USD 5-15 million per transaction and potentially a larger ticket size along with co-investment support from its limited partners, who have committed to investing in the fund.