Tata Capital and Mizuho Securities to Raise $500 Million for India-Focused PE Fund
Tata Group's financial services arm, Tata Capital, in conjunction with Japan's Mizuho Securities, is setting up a private equity fund with a target of $500 million. This fund will be specifically directed towards investments within India. This initiative follows Tata Capital's announcement last month regarding its broader plan to garner $1 billion from both international and domestic investors by the conclusion of the following year.
Mizuho Securities' India-Focused Growth Strategy
Mizuho Securities, concurrently, is strategically focusing on cultivating a growth capital private equity enterprise in India. The financial services giant aims to channel investments into Indian companies through confidential transactions.
Leveraging Japan's Savings Base
Praveen Kadle, Managing Director and Chief Executive Officer of Tata Capital, highlighted Japan's substantial savings base as a dependable wellspring of capital. "Japan’s saving base offers a stable source of capital," Kadle stated. He expressed optimism about significant forthcoming investments from Japan and other international investors should the initiative progress as anticipated. The expectation is that, if successful, this endeavor will attract strong interest and capital inflow from Japanese and other global investors.
Singapore's Strategic Advantages
Kadle also revealed that Singapore was selected as the base for this initiative due to what Tata Capital views as its transparent regulatory frameworks, coupled with economic and tax benefits. The company believes that these advantages make Singapore an optimal jurisdiction for the fund's operations.