At the heart of our work lies our stock picking process, portfolio creation, our strategy for adding value to our portfolio companies and an exit strategy.


Investment Selection:

We prefer to identify good businesses and back management teams that we can work closely with. Our basic approach in Indian Infrastructure stems from a top-down analysis of sectors followed by a bottom-up rigor to evaluate specific opportunities.

For the top-down analysis, we evaluate broader economic factors that impact a sector, consider current and project future trends in regulatory regimes and study the competitive intensity with a view to rate sectors on a relative basis. This helps us map out and rank a universe of possibilities with varying risk-return profiles to focus on.

We follow through with detailed investment analysis for every specific opportunity. This involves a rigorous evaluation after developing a deep understanding of the business. Our team brings in significant local experience. It helps us assess management teams and develop reference points. Overall, our team's network in the Indian markets helps us stand out by cross-checking initial investment hypotheses with solid "on-the-ground" evidence.

Portfolio Creation:

Our focus is to create a portfolio of companies that provides broad based exposure to sectors we have identified in our top-down analysis.

We take care to avoid concentration risks when decisions are made. Not only do we avoid being overly exposed to the same sector, we also take care not to be too subjected to similar business drivers, geographies, regulatory regimes and risk-return profiles.

Value-Add :

Being a minority investor with special rights gives us a platform to make contributions to our investee companies. We look to support management in formulation and execution of their strategy in a non-intrusive manner. We also help set high benchmarks for governance and control.

Further, we bring to the table our relationships with policy formulators, regulators, key financial intermediaries and banks both within and outside India. Senior members of the team have domain knowledge in diverse industries. In addition we often consult with the "best-of-breed" specialists with the right expertise. We are thus able to advise sponsors on specific matters, including helping them work out issues with regulators, lenders and other parties. In essence, sponsors gain a major resource in having KAUP Capital as a long term partner.

Exits :

We work on developing exit strategies which involve carefully plotting each investee company's investment plans and growth trajectory, and look to maximize value creation. At the same time, we also take a "portfolio approach" in planning exits in a phased manner for the overall portfolio. Our preferred exit route is through the public markets. We are also known to finanarcial intermediies who bring mergers and acquisition proposals for our consideration.

Whichever the method we choose to follow, our goal is to realize right valuations for our investors.

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