TCG to launch ₹2,000 crore category III AIF

MUMBAI: TCG Asset Management, the asset management arm of The Chatterjee Group (TCG), is planing to launch a category III Alternate Investment Fund (AIF) called Primario Fund with a target corpus of over ₹2,000 crore.

“We are launching a category III AIF, which will infuse primary capital in listed as well as unlisted companies in the form of preferential allotments, qualified institutional placements, initial public offerings (IPOs), pre-IPOs and institutional placement programmes,” said Chakri Lokapriya, managing director, TCG Asset Management.

Led by Lokapriya, TCG Asset Management has been investing in Indian companies since 2004.

Founded in 1989, TCG is based in New York and specialises in petrochemicals, pharmaceuticals, biotech, financial services, real estate and technology sectors in the US, Europe and South Asia.

Primario Fund will invest in opportunities where its capital can help companies restructure their balance sheets and enable them to return to a growth path.

“We will provide growth capital or late-stage investments wherein company is sitting with 40-50% capacity utilisation, has some amount of working capital and long-term funding mismatch and therefore needs to set right its capital structure. Our capital will help them refinance its long-term debt which will lower interest expense, increase profitability and therefore create the environment for sustainably high stock prices,” said Lokapriya.