Tata Capital partners Mizuho Securities for $1bn private equity fund

Japanese group sees potential in unlisted Indian companies.

Tata Capital Pte Ltd, the Singapore-based subsidiary of Tata Capital, has entered into a strategic partnership with Japan's Mizuho Securities to raise a $1bn private equity fund.

The objective of this fund is to invest in unlisted companies in the Indian mid-market space using the network provided by the Tata companies, said Mizuho Securities.

Under the agreement, Tata Capital Pte along with partnership of Mizuho Securities would raise funds from Japan and other key international markets like south-east Asia, West Asia and parts of APAC for its growth fund.

The growth would be managed by Akhil Awasthi, along with Praveen Kadle, MD and CEO of Tata Capital, and six other members.

Mr Kadle said: "The total savings base of Japan offers a stable source of capital. However, at present only a small fraction of this flows into India.

With this strategic alliance, we are confident that Japanese and other international investors will be able to invest in high-potential mid-market companies in India."

In February 2008, Mizuho Securities and Tata Capital executed a non-exclusive agreement for future partnerships on a wide range of businesses, such as the private equity fund business and wealth management services, and have since moved forward to promote the private equity business and finalize fund structures.