Tata Capital, the flagship financial services arm of the diversified Tata Group, has kicked off the process to raise as much as $200 million (Rs 1,400 crore) for its second healthcare fund, VCCircle reported. The new fund would be almost three times bigger than the previous fund, Tata Capital Healthcare Fund I, which received capital commitments of Rs 319 crore (about $62 million) in April 2012. Of this, the fund invested Rs 245 crore in portfolio companies, according to its annual report for the fiscal 2017-18.
The company has begun talks with limited partners, or investors, for the second healthcare fund, the report added. It will replicate the strategy of its predecessor fund. The fund is, however, unlikely to reach the first close this year. As per the annual report, the first fund targeted significant minority positions in portfolio companies with board representation and other significant shareholder rights. It provided growth capital funding to companies with an average size of approximately Rs 35 crore and holding period ranging from two to eight years.