Deployment Philosophy

Investment Strategy

From sourcing to exit—four mutually reinforcing pillars designed for India's SME context, where information asymmetry and governance variability are high.

The Five-Stage Investment Process

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1. Sourcing

Filtering 200+ deals to identify top 10%.

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2. Screening

Strict Quantitative "Knockout" criteria (Governance, Leverage ROCE).

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3. Evaluation

360-degree diligence (sustainable competitive advantage, business and industry growth prospects, management capabilities, ESG.

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4. Decision

Rigorous with all views on board basis: Why it may fail, why exit will be difficult , what can go wrong etc.

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5. Execution

Structured deployment with clear performance-linked tranches, with selective follow-on participation in high-performing portfolio companies.

Rigorous Selection

Underwriting Discipline

Every deal satisfies a comprehensive checklist codified from wins and losses—blending analytical consistency with qualitative judgment where it matters most.

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Promoter Integrity

Background verification, skin-in-the-game assessment, related-party review, and governance philosophy evaluation.

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Revenue Quality

No customer concentration exceeding 20%, validated pricing power, and backlog visibility analysis.

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Cash Flow Mechanics

Working capital breakdown, capex intensity segregation, stress-tested under downside scenarios.

Further Diligence Focus

  • check_circle Statutory Hygiene: Tax filings, GST compliance, IP ownership verification, and indemnities built into structuring.
  • check_circle Value Creation Levers: 3–5 defined EBITDA growth initiatives with measurable timelines and quantifiable ROI.
  • check_circle Exit Mathematics: 3–5 credible buyers identified, comparable benchmarks, and defined valuation bridge.

Investment Philosophy

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Buy Durability

Multi-year cash-flow visibility, pricing power, sticky customers, and regulatory moats. Pay reasonable valuations—never chase thematic premiums.

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Hands-On, Not Hands-In

Active board participation and MIS reviews. Respect promoter expertise while enforcing milestone accountability and transparency.

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Start With the Exit

Pre-identify strategic acquirers and refinancing options at LOI stage. No investment is made without credible exit visibility.

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Governance Focus

Clean books, regular audits, and arm's-length transactions command premium valuations and drive IRR certainty.

Post-Investment: Active Stewardship

1

100-Day Plan

Immediate implementation of governance enhancements and operational improvements.

2

Monthly MIS

Detailed tracking of revenue, burn rate, and order book versus projections.

3

Quarterly Reviews

Formal board-level assessment of strategic progress and financial performance.

4

Escalation Protocol

Early warning system triggering intervention for any material deviation.

Contractual Exit Rights & Protections

  • SME IPOs on BSE SME & NSE Emerge

    Suitable for well-governed, scalable SMEs. High liquidity events with strong market receptivity for quality SME listings.

  • Strategic Sales

    Acquisition by industry leaders seeking consolidation. Value unlocking through strategic synergies and market consolidation opportunities.

  • PE/VC Secondary Sales

    Selling stakes to larger funds at scale stage. Attractive re-rating opportunities as companies mature and demonstrate growth track record.

  • Buyback / Promoter Buyouts

    Cash-flow positive SMEs often repurchase equity. Common exit mechanism for profitable, well-managed businesses with strong cash generation.

  • Structured Redemptions

    Hybrid equity instruments for partial liquidity. Flexible exit mechanisms tailored to specific investment structures and performance milestones.

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    Target Investment Horizon: 3-5 Years

    Opportunistic exits enabled through active portfolio management.