Tata Capital now looks to launch $300 mn Africa PE fund

Flic-en-Flac (Mauritius): Salt-to-software conglomerate Tata group’s financial services arm, Tata Capital, plans to launch an Africa-focused private equity fund with an initial capital of about $300 million.

The company would also look at utilising Mauritius as a platform for its Africa initiatives, a senior executive said.

The proposed Africa fund from Tata Capital, which is part of India’s biggest business house, would mainly focus on segments such as consumer goods, agriculture and agri-processing.

“We are contemplating an Africa-focused private equity fund… Initially it will be around $300 million,” Tata Capital senior vice-president (private equity) Ashutosh Tyagi told PTI.

The proposed fund would also look to invest in energy segment, including renewables, light manufacturing and financial services, he said.

Tyagi is participating in an international private equity conference being organised by the Mauritius government’s investment promotion body, Board of Investments. For the fund, the company would be mainly tapping manpower resources from within the Tata group, which employs about 4,000 people in different parts of Africa.

Tyagi said that the capital raising activities for the Africa-focused fund have not started, and once the activities begin, it would take around one-and-a-half to two years for the fund to become operational.“The fund is being planned as a part of a long-term strategy,” he added.

Earlier speaking at the private equity conference, Tyagi said the company would look at utilising Mauritius as a platform for its Africa initiatives.

Mauritius has been promoting itself as a gateway to Africa for companies and investors from India and other countries.

Tata group, having presence in about 13 countries in the African region, rakes in annual revenues to the tune of $2.5-3 billion from African operations. The group’s worldwide revenue is more than $100 billion.