Tata Capital secures prominent institutional Limited Partner for its new private equity growth fund
In the first half of 2025, private equity and venture capital investments in India reached an impressive $26.4 billion across 593 deals, marking an 11% increase compared to the previous half-year but a 19% decline year-on-year compared to the same period in 2024 [1].
This trend is particularly notable in the realm of pure-play PE and VC investments, which accounted for $18.3 billion in 1H2025, slightly down from $18.9 billion in 1H2024 [1]. Foreign institutional investors, including offshore funds, continue to dominate these private equity deals, contributing the majority share of the deal value in early 2025. This underscores strong global confidence in India’s private equity ecosystem, especially in sectors like infrastructure, technology, and financial services [3].
One of the most significant developments in this space is the commitment of the International Finance Corporation (IFC) as an anchor Limited Partner for HDFC Capital's $1-billion real estate fund [2]. The IFC has committed up to $150 million as an anchor equity investment in the H-DREAM Fund, a private credit fund managed by HDFC Capital, targeting green affordable and mid-income housing development in urban India, aiming to mobilize up to $850 million from institutional investors [4].
Tata Capital Ltd, a financial services arm of the Tata Group, has also secured a commitment from a key institutional investor for its latest growth-oriented private equity fund, though the specifics of the deal, such as the size of the fund and the identity of the investor, remain undisclosed [1]. This commitment was secured for Tata Capital's non-bank lending business. Notably, Tata Capital Ltd has filed draft papers for an initial public offering this month [5].
Meanwhile, 247VC is reaching out to key Limited Partners for its maiden fund and is close to reaching the first close of its maiden fund [2]. The commitment for Tata Capital's private equity fund is not the first such instance, but the article does not specify whether this is the first time Tata Capital has secured such a commitment for a private equity fund.
Atomic Capital has also achieved the final close of its maiden Venture Capital fund, though details about the terms of the commitment from the key institutional Limited Partner are not available [1].
Overall, while the volume and value of deals have some variation year-over-year, institutional investors remain committed to growth-oriented private equity funds in India. Large-scale add-on deals, ESG considerations, and sectors aligned with India’s economic growth trajectory continue to pull significant interest from these investors [1][3][4][5].
References:
[1] KPMG and PE-VC Cell of SEBI. (2025). India Private Equity Report H1 2025.
[2] Livemint. (2025). HDFC Capital secures IFC as anchor LP for $1-billion real estate fund.
[3] The Economic Times. (2025). Foreign investors continue to dominate PE deals in India.
[4] Mint. (2025). IFC commits up to $150 million to HDFC Capital's H-DREAM Fund.
[5] Business Standard. (2025). Tata Capital files draft papers for IPO this month.
Finance continues to play a significant role in India's growth trajectory, as institutional investors remain committed to growth-oriented private equity funds, particularly in sectors like infrastructure, technology, and financial services. For instance, the International Finance Corporation (IFC) has committed up to $150 million as an anchor equity investment in HDFC Capital's private credit fund, targeting green affordable and mid-income housing development in urban India.
