Parth Verma

Family Offices. A new-age term for India, but a mechanism by which European and American families have been protecting and growing wealth consistently for decades. A big thanks to BCAS - Bombay Chartered Accountants' Society and Kinnari Gandhi for inviting me to be a part of their Family Office summit on Saturday. Starting off with a fantastic keynote from Rishabh Mariwala, who's family office Sharrp Ventures has played a pivotal role in the Indian startup space, there were fantastic sessions across topics. I had the pleasure of moderating one with Sachin Tagra, Anupa Tanna Shah, Samir Shah and Rubin Chheda, on the evolution of Family Offices and the advent of new asset classes available, from Public Equities to Private Credit, Venture Capital/Private Equity to Derivatives. Anupa shared her family's evolution, from creating wealth in Commodities, to preserving and growing it through Real Estate. Rubin, who runs Neo's Private Credit fund, showcased the important role Family Office capital holds in supporting the next generation of entrepreneurs through access to debt capital, and how lucrative the space can be. Sachin manages JSW Ventures, which, similar to Riverwalk, began as a Single Family Office, evolving into a full fledged institutional fund, anchored by the original family, raising a majority of capital from external investors (usually other Family Offices). Rahul Khanna, CIO of Metro Shoes, explained how it's important to look at post-tax, post-fees returns, while Subeer Monga and Devashish Khanna explained what it takes for FOs to evaluate direct investments. Subeer, sharing a VC perspective, suggested that FOs should co-invest alongside Funds they've invested in, ideally in sectors they have deep experience in. Devashish, who runs a Single Family Office, explained that building teams to do direct investments takes significant effort and expense, so it's important for FOs to understand whether they are ready to commit to the cost + time. One of the resounding commonalities was focusing on good advisors, folks who take a long term approach, instead of making a quick buck by selling every 'sexy' opportunity (pre-IPO rounds anyone?) #venturecapital #familyoffice #wealth

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Healthcare in India has quietly shifted. What was once a mission-led sector is now a PE-owned asset class. Most of the country’s leading hospitals are no longer promoter-led. They are backed by Private Equity funds chasing scale and returns. Temasek → Manipal Hospitals (MHEPL) Blackstone → CARE Hospitals, Quality CARE India Limited CVC / KKR → HealthCare Global General Atlantic → Ujala Cygnus Hospital KKR → Baby Memorial Hospitals This shift has undeniable positives: capital inflows, modern infrastructure, global best practices. But it also hardwires ROI targets into an industry built on empathy. And the trade-offs are visible: - Profitable procedures prioritized over basic care - Luxury patient experiences over affordability - Operational efficiency over emotional connect The sector needs growth capital - no doubt. But when healthcare becomes just another asset class, we risk eroding its very core: quality and accessibility for all. The question: Can we let healthcare become just another profit-driven asset class… without eroding its core - quality and accessibility for all? #india #healthcare #privateequity #growth #funding #asset

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Equity Research | Investment Banking | PE/VC Do you aspire for a career in these? We have something for you! I looked at what all skills are needed in these roles. Also spoke to various firms and teams where we train, to understand core skills firms seek. I found that while there are many resources that teach the concepts very well, few link all the major concepts together in a practical manner. Speaking to 100s of aspiring professionals, I found 3 common challenges. "I know the concepts but have not seen the practical applications" "I understand parts of the process, like Excel, or Financial Modeling, or Analysis, but am unable to link it all together" "I have joined online programs in past, but had difficulty in completing them" We decided to create a program to address the above challenges The FinShiksha Analyst Program So what is so different about this? Based on my experience of about 21 years in financial markets, 3 aspects have been differentiated here 1) Valuation is not just Financial modelling! - FSA, Industry Research, Reading Annual Reports, Earnings Transcripts, Business Projections and Valuations are all part of the exercise. - We need all of them in a structured manner to value a company. - So we created a learning experience covering all these for you. 2) The program is a Cohort based program, where peers motivate each other to complete it! - Everything is broken into small assignments, projects, and continuous interaction - to ensure that we are on track, and make the most out of our effort 3) Most of all, we built the practice into the program! - By the time you finish the program, you would have built valuation models on 4 different listed companies from different sectors. Add to that continuous mentorship, bunch of assignments for practical learning, closed group interaction with your peers, and we have a solid 10 week learning ready! The ONLY thing needed from your end is effort and commitment. To explain the program details, and answer some of the most common questions, I am conducting a webinar on Tuesday September 9th, at 9 pm IST. -- Register for the webinar here -- https://lnkd.in/gKcrabWZ A video explaining the program outline is also available here https://lnkd.in/dcr_jmxx Apply for the program here https://lnkd.in/gHqTT-Q3 Please tag any of your friends who may find this relevant Do share this with your network Thanks in advance 🙏 You can find more details about the program on my profile Peeyush Chitlangia, CFA Do reach out if you have any queries!

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Team Samriddhi Investment Fund Presents: IPO Analysis on Urban Company "Every IPO is not just about raising capital, but about unlocking value" We are excited to present our first IPO Analysis of the year, featuring the much-anticipated Urban Company IPO. This marks the beginning of our 2025 IPO Analysis Series, where we will continue to bring you in-depth coverage of upcoming offerings in the Indian markets. In this report, we cover: - Offer Details and Key Highlights - Key Financials - Industry Analysis - Company Analysis - SWOT Analysis and Value Drivers Dive in to gain insights into this potential investment opportunity. Happy reading! Kanika Garg Ritik Agarwal, FRM #IPOAnalysis #InvestmentResearch #UrbanCompany #SamriddhiInvestmentFund #FinanceInsights #InvestmentInsights #IPOInsights

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#PrivateEquityBasics How General Partner (GP) make money from private equity funds? General Partner (GP) in Private Equity (PE) funds earn money through several key mechanisms associated with their roles in managing and growing the fund’s assets. Here’s a detailed breakdown of how GPs generate income: 1. Management Fees Management fees are the primary and most predictable source of income for GPs, providing a steady revenue stream regardless of the fund’s performance. These fees are typically: • Percentage of Committed Capital: Usually around 1.5% to 2% per annum of the total capital committed by the Limited Partners (LPs) • Usage: These fees cover the operational costs of managing the fund, such as salaries, administrative expenses, and overhead Example: If a PE fund raises $1 billion and charges a 2% management fee, the GP earns $20 million annually as a management fee. 2. Carried Interest (Performance Fees) Carried interest, or “carry,” is a share of the profits generated from the fund’s investments, and it constitutes the most significant and potentially lucrative part of a GP’s compensation. Key aspects include: • Profit Sharing: Typically, GPs receive 20% of the profits after returning the initial invested capital and often achieving a preferred return (hurdle rate), commonly around 8% • Alignment of Interests: This performance-based compensation aligns the GPs’ interests with those of the LPs, incentivizing the GPs to maximize the fund’s returns Example: A PE fund generates $500 million in profits after returning the original capital and the preferred return to the LPs. The GP’s 20% share of these profits would be $100 million. 3. Portfolio Company Fees GPs may charge additional fees to the portfolio companies for various services provided during the investment period. These fees can include: • Monitoring Fees: Compensation for ongoing oversight and advisory services • Transaction Fees: Fees for services related to mergers, acquisitions, or other transactions • Director Fees: Fees paid for serving on the board of portfolio companies • Consulting Fees: Fees for providing specialized expertise or consulting services Example: A PE firm might charge a portfolio company $1 million annually for monitoring services and additional fees for consulting or board services. 4. GP Commitments and Capital Gains GPs typically invest their own money into the funds they manage, known as the GP commitment. This can range from 1% to 5% of the fund’s total capital. They earn returns on this invested capital, just like the LPs, which can be significant if the fund performs well. • Capital Gains: The returns on their own capital investment in the fund, often reinvested in the same manner as the LPs’ investments, but sometimes on more favorable terms Example: If a GP commits $10 million to a fund and the fund returns 2x the invested capital, the GP’s commitment would yield $20 million, resulting in a $10 million profit for the GP

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Sizes that outsize! It is not uncommon to find concerns around fund sizes and hence their commensurate performance. This ostensible concern makes us look for sleeker options backed by relatively recent performances (due to their low ageing) and with the rationale that these have a long runway to cover before their chopper like structure turns into a Boeing! So till then, it's all good Going! Though what gets conveniently ignored is the velocity of market expansion that vindicates outsized funds. However, the overarching statistic that reflects the fund's ability to stomach market oscillations over decades and yet deliver outsized returns gets masked by fancier and newer names. Lest I forget the commercials. Many a times what is clinical in theory doesn't work in entirety, when it comes to hitting the ground hard and running. This is not to say that smaller sized funds haven't delivered or do not old the promise to swell into Boeings tomorrow. Hence it is prudent to have a mix of schemes based on sustainable performances. 'What has worked thus far will continue to work far!' And if it doesn't as an exception, there is always a recourse available in the form of reviews. Therefore, the challenge is in staying away from half found truths that translate into biases. A cursory glance at the table below by Value Research shows the kind of exceptional performance rendered by select schemes over time periods. Of course this is just the gist. The actual list of relatively larger schemes that boast of outsized returns runs much longer.

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The recent SEBI amendments have in effect struck a crippling blow to the angel fund industry, an industry that has been the backbone of seed capital for India’s startups. By mandating that only accredited investors can participate, the entry barrier has been raised far beyond the reach of most genuine early-stage backers. The eligibility thresholds make it evident that the pool of qualifying investors will shrink drastically. (Our assessment: by at least 50%) This goes against the very spirit of angel investing, which relied on professionals, entrepreneurs and HNIs with risk-taking capacity to fund the next generation of startups. Further, the requirement to on-board accredited investors introduces a direct monetary and operational burden. With fees of around ₹17,000–18,000 per investor (including processing and certification costs), funds will inevitably have to bear this expense. For an angel fund with even a modest investor base, this cost multiplies rapidly, creating yet another disincentive. The consequence is clear. SEBI’s regulatory alignment with institutional standards has come at the expense of grassroots risk capital. Angel funds, which were specifically carved out to democratize early-stage investing and bring more participation into the startup ecosystem, will now face existential challenges. Unless the accreditation process is simplified, costs rationalized and thresholds rethought, the result will be fewer angel funds, lower participation and a funding gap at the most crucial seed stage of India’s innovation pipeline. In short, SEBI may have unintentionally killed the very mechanism that helped countless startups take their first steps.

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Total potential ESOP wealth in India stands at INR 14.2 lakh crore! That’s 22% of India’s mutual fund industry AUM — and more than twice the PMS industry’s AUM. Let that sink in. But the biggest ESOP wealth creators are not who we usually think. Nifty 100 companies generate more ESOP wealth than the entire startup ecosystem. HDFC Bank alone created INR 5,282 crore of ESOP liquidity in 2024 — twice as much as India’s entire startup ecosystem did that year. It’s clear that ESOPs are massive wealth-creation engines hiding in plain sight. Yet our quiz last week revealed some surprising facts: Over 65% of ESOP holders with more than ₹1 crore in ESOPs are unaware of vesting calculations, the impact of dilution, or whether their employer’s ESOP policy is favourable. When Revant, Shantanu, and Chirag invited me on the Asymmetric Podcast, I stumbled upon research that made me question many of my own beliefs about this underrated wealth-creation tool. We break down India’s ESOP story in under 75 minutes, covering: - Salary vs Salary + ESOP - Ranking different ESOP policies - Cases where ESOP wealth was lost - The Flipkart Mafia - Life-changing ESOP stories of non-founders - How founders should allocate ESOPs - And a big surprise at the end I promise this will be worth your time — even if you have just 1 unit of equity in your company. Link to the full episode in comments! #ESOPs #WealthManagement #Dezerv #AsymmetricPodcast

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