Fund aims to raise capital from the overseas and domestic market

Tata Capital has unveiled the Tata Capital Healthcare Fund II, its second healthcare fund, with which the company hopes to raise a massive funding of $200 Million from overseas and domestic investors. According to reports, Tata company officials stated that the fund theme revolves around the healthcare and life sciences sector in India and aims at domestic competency and consumption.

According to one of the fund partners at Tata Capital Healthcare Fund, the company’s primary focus will center on growth fund investment with a ticket size of nearly 12 to 15 million dollars. The fund potentially targets 10 to 12 investments in segments that include diagnostics, medical devices API, and pharmaceuticals.

Fund partners express faith in the fund’s potential

Visalakshi Chandramouli, a fund partner at Tata Capital Healthcare Fund expressed her confidence over the potential of the fund in making a gross Internal Rate of Return (IRR) of not less than 20 to 25 percent. The Tata Capital Healthcare Fund I, the first healthcare fund by the company introduced in the year 2010 and closed in 2012, had Assets Under Management (AUM) valuing $70 Million. The average ticket size of the first healthcare fund valued at $8 Million. With this initial healthcare fund, the company invested in a total of nine companies. Four out of these nine companies made profitable exits, where Tata Capital now aims at exiting the fifth along with the sixth in the coming six months. Chandramouli said that Tata Capital was able to offer greater returns on the capital invested by investors, and yet still hold the other five investments that they target closing in a few years. She further illustrated that the first healthcare fund is continually tracking a gross IRR of 33 percent on the realized investment.

The investment strategy of the first healthcare fund aimed at two themes including domestic competency and consumption. The fund focused on firms generating a significant cash flow from the domestic market, under the domestic consumption theme and the domestic competency theme; tracking the key benefits of firms in terms of technology or manufacturing.

Healthcare funds creating opportunities for greater returns

Such healthcare funds are changing the face of the healthcare sector and are bringing in more capital for business and product offering improvements. With such funds, companies will not just be able to invest in new domains for business growth but also gain increasing profits

Published by Sandali

A former journalist, Sandali is a content marketer with over 5 years of writing experience, across various industries including Food Innovation, Healthcare, and IoT and Technology. Sandali has been weaving corporate stories for organizations through different forms of impactful marketing content. Her key aim is to strategically align well-crafted narratives with business objectives, translating into a powerful communications platform for the company.

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