EXECEDO REALTY FUND - I (ERF - I)

A key contributor to the ability to generate deal flow is the management’s breadth and depth of industry relationships, Athamus Venture’s track record of engagement with investee companies and the strength of the team Athamus. The Fund’s extensive private equity experience as well as the management’s reach and relationships with industry participants will provide significant advantages in pursuing the investment strategy. Athamus Venture has, over the years, established a strong network with financial advisors and investment bankers, thereby providing it fast and first cut access to several opportunities across sectors. In addition to the above, the Fund also has access to an in-house team of business development professionals who are dedicated full-time towards sourcing market opportunities.

The Fund will adopt and undertake a rigorous due diligence process and financial evaluation. The Investment Advisor’s significant experience in evaluating a number of deals over the past years has provided us insights on due diligence aspects which are specific to emerging sector economies. By virtue of its network of relationships, the Fund has preferential access to legal counsel, “Big Four” accounting firms, as well as other advisors to assist in identifying material risks and validating key assumptions. The Fund will engage experts to review key risk areas, including legal, tax, accounting, business, technical and operational matters. A detailed management due diligence will also be followed especially in management buyout cases to assess the capabilities, past performance and expertise of the management to provide fresh growth impetus to target investments.

After preliminary evaluation of deals, specific deal opportunities are discussed in regular meetings (pre Investment Advisory Committee approvals) by the investment teams. The primary objective of such discussions is to obtain preliminary feedback from the team regarding the deal as well as to seek approvals and guidance on specific issues e.g. structures, appetite for particular sector, management reputation, etc. The Investment Advisory Committee (a committee constituted at the level of the Indian Advisor) follows a rigorous screening test which tests the investment opportunity on a variety of parameters e.g. conformity with investment objective, specific business dynamics, cyclicality conditions, financial parameters, portfolio management strategy, capability of existing management of portfolio company, proposed exit strategy, etc. While the deal team makes an investment proposal to the Investment Advisory Committee, it is accompanied by detailed comments and review by the Chief Risk Officer of Indian Advisor, who provide an independent view on the investment opportunity. The Investment Advisory Committee accordingly puts forth recommendations to the Fund’s Investment Committee and Board for their approval.

The Fund seeks to invest in companies which are capable of acquiring land for development at early stage and true market price. Besides capital for growth, where required, the Fund will assist its Portfolio Companies in identifying, evaluating as well as managing the next growth wave e.g. making bolt-on acquisitions, brownfield expansions, strengthening management, accessing capital markets, etc. The Fund will actively monitor the performance of the Portfolio Companies and seeks to implement a detailed MIS report for each of its portfolio companies. In addition to the above, the Fund will have periodic portfolio review meetings, wherein the performance of the investment is discussed and reviewed in detail.

The Fund’s exit strategy is to seek to time exits opportunistically using a mix of divestment strategies including IPOs, sale of projects, strategic sales etc. The Fund ensures that the exit, along with ensuring optimum returns for its investors, is also in the best interests of the Portfolio Company.