Driving semiconductor sector interest and edging out Advent, TPG Growth Fund moves closer to Tessolve stake acquisition.
TPG Inc has emerged as the frontrunner to acquire a significant minority stake in Tessolve, the Bengaluru-headquartered semiconductor design and engineering company majority owned by Hero Electronix, according to people familiar with the matter.
The private equity firm’s growth fund has signed an exclusivity pact with Tessolve to begin final deal negotiations, edging out a rival bid from Advent International. The transaction, which values Tessolve at between $475 million and $500 million, will see TPG invest $140–150 million. The exact size of the stake has not yet been disclosed.
A shareholding agreement is expected to be finalised this week, with a formal announcement anticipated within the next fortnight. The investment will mark the second deployment from TPG Growth Fund VI, which raised $4.8 billion earlier this month. The fund’s only other investment to date is a 35% stake in vaccine packaging maker Schott Poonawalla.
The deal structure includes both primary and secondary components. Existing backer Novo Tellus Capital Partners, a semiconductor-focused private equity firm supported by Singapore’s Temasek, is set to partially exit Tessolve alongside certain seed investors. Fresh capital will also be injected to accelerate the company’s growth.
Hero Electronix, part of the diversified Hero Group promoted by Suman Kant Munjal, acquired its initial stake in Tessolve in 2016. Since then, Tessolve has expanded as a player in semiconductor engineering services, supporting the global chip supply chain.
If completed, the investment will further strengthen TPG’s position in high-growth technology sectors while enabling Tessolve to scale operations amid rising global demand for semiconductor talent and design expertise.
