Non-lending businesses like private equity and wealth are accretive to Tata Capital: Rajiv Sabharwal

Rajiv Sabharwal MD and CEO Tata Capital Limited

Tata Capital, the third largest diversified NBFC in the country with a loan book of over Rs 2.3 lakh crore, sees significant value in its non-lending businesses of private equity and wealth management and has no plans of exiting these businesses, Managing Director and CEO Rajiv Sabharwal said in an interaction with Moneycontrol.

“We clearly believe that non-lending businesses are accretive to Tata Capital. And we would want to remain in these businesses and grow these businesses,” Sabharwal said, underscoring how the company is looking beyond traditional lending.

On the private equity front, Tata Capital has been managing multiple sector-focused funds.

“We are currently investing through two funds, the growth fund and the healthcare fund,” Sabharwal said.

He added that both the growth and healthcare funds have already completed their first cycles, with Fund I having returned capital and Fund II fully invested.

“They are now in the market to raise Fund III. Both have done extremely well for us,” he noted.

The company’s board is also actively evaluating new areas, with decarbonisation identified as a priority theme.

Since inception of the private equity business in 2009, Tata Capital has set up eight thematic funds - Tata Capital Growth Funds I, II and III, Tata Capital Healthcare Funds I and II, Tata Capital Innovations Fund, Tata Capital Special Situations Fund and Tata Opportunities Fund.

As at June 30, 2025, Tata Capital has raised around Rs 7,000 crore across its domestic funds and offshore funds, with 53 deals in over 15 years, as per the NBFCs IPO documents.

Alongside private equity, Tata Capital is pushing its wealth management arm, a relatively newer venture started four years ago.

“We have been trying to scale up that business. Over a period of time, we want to invest more in that area and grow that franchise further,” Sabharwal said.

The Tata Capital chief added that wealth management is a natural extension of the group’s brand, built on trust and long-term relationships.

“It is about offering the right advice, which we will be focused on,” he said.

Through Tata Capital Wealth, the NBFC offers wealth management services for high-net-worth individuals and retail clients. It managed a total AUM of Rs 6,980 crore as at June 30, 2025, growing at a CAGR of 26.4 percent from fiscal 2023 to the three months period ended June 30, 2025.

Tata Capital Wealth offers a bouquet of customised individual and business offerings, backed by a dedicated team of wealth managers and investment product specialists.