True North Private Credit has led a Rs 360 crore ($40.8 million) investment in Innova Rubbers and Vee Tee Auto Manufacturing, aimed at consolidating the promoters’ stake and strengthening control to drive future growth.
The round also saw participation from two other funds and a few prominent family offices.
Both Innova Rubbers and Vee Tee Auto Manufacturing were founded by the Ambardekar, Mekal, and Bakshi families.
Innova Rubbers, established in 1969, manufactures a range of rubber components used to reduce noise and vibration in vehicles.
Vee Tee Auto Manufacturing, on the other hand, is engaged in the aftermarket distribution of auto parts such as suspension systems, filters, oils, and brake components for two-, three-, and four-wheelers. Founded in 1988, it also supplies steering parts for tractors directly to leading manufacturers.
Altamount Capital Management acted as the strategic advisor to the promoters for this transaction.
“This transaction in particular is among the larger private credit deals in India and is a testament to our team’s growing capabilities to deliver transactions of larger sizes to meet different business needs,” said Kapil Singhal, Managing Partner, Private Credit, True North, in a media release.
True North, one of India’s home-grown private equity (PE) firms, was established in 1999 and focuses on investments in mid-sized, profitable businesses.
In the PE space, True North has launched six investment funds with a combined corpus of around $3 billion, including co-investments. The firm entered the private credit segment in 2022 with its Performing Credit Regular Income Fund, which has raised over Rs 2,000 crore and completed 23 investments, 11 exits, and three partial exits.
Over the past 25 years, True North has invested in more than 75 businesses across various sectors, including consumer, financial services, healthcare, technology, and manufacturing.
