Risk is managed. It is never eliminated.

Any position can lose value if earnings, execution or the re-rating catalyst disappoint. Evaluated through the 14-stage process with downside scenarios modelled before entry; monitored against the entry model each quarter; controlled by position limits, catalyst diversification and the mandatory IC revisit when a thesis breaks.

SMID and pre-IPO positions trade thinly or not at all; exits may be slower or at worse prices than modelled. Evaluated at stage 9 (float, volumes, lock-ins, block feasibility) sized against the intended position; monitored continuously as liquidity develops; controlled by the cash buffer, the 12-month investor lock-in with quarterly windows (matching fund liabilities to asset liquidity), and fallback exits per position.

A concentrated book amplifies single-name outcomes in both directions. Controlled by IC-enforced position and concentration limits and by diversification across five strategies and multiple catalysts; monitored at each quarterly portfolio review.

Pre-IPO and unlisted positions have no market price; carrying values are estimates that may not be realisable. Evaluated with conservative entry pricing at stage 8; controlled by independent NAV computation at the administrator under the fund’s valuation policy; investors see the basis of every mark in reporting.

Sub-₹2,000 crore companies exhibit higher volatility, wider drawdowns, thinner governance and greater business fragility than large caps. This is the deliberate trade-off of the mandate; it is managed through promoter and governance screening (stages 4 & 6), sizing discipline — and never hidden from investors.

A planned listing can be delayed or withdrawn, leaving capital illiquid — the group’s own record includes exactly this outcome, disclosed on the track-record page. Controlled by entry discounts that compensate for the risk, fallback exits (strategic sale, secondary), and strict allocation limits on the pre-IPO sleeve (15–25%).

Anchor positions carry lock-in periods during which prices can fall below entry — the anchor book’s one loss (−14%) is shown unedited. Controlled by the six-filter screen on issue quality, valuation testing against institutional demand, and defined exit windows.

SEBI, FEMA, RBI and Mauritius FSC frameworks evolve; changes can affect the FPI route, eligibility, taxation or specific instruments. Monitored continuously by the manager and the fund’s advisers; controlled by operating strictly inside the SEBI FPI Category I framework and the FSC-authorised investment policy.

The fund is USD-denominated with INR-denominated assets; rupee depreciation reduces USD returns. Managed — not eliminated — through non-deliverable forwards and currency markets at the manager’s discretion; hedging carries its own cost, which is reflected in returns.

Errors in execution, settlement, records or technology. Controlled by the separation of functions across manager, administrator (KFS, Mauritius) and custodian (Orbis, India), independent statutory audit, and the licence’s standing AML/CFT and governance obligations reviewed annually.

Brokers, banks and transaction counterparties can fail. Controlled by transacting through regulated counterparties, delivery-versus-payment settlement where available, and diversification of counterparty exposure.

Assets held in custody could be compromised by custodian failure. Controlled by independent custody under the FPI framework with assets segregated from the custodian’s own balance sheet, reconciled by the administrator.

The structure spans Mauritius and India; treaty positions, enforcement and cross-border flows depend on both. Controlled by using the established Mauritius FSC / SEBI FPI corridor — the framework used by global institutional investors into India — with professional advisers in both jurisdictions.

A broad Indian equity drawdown will affect the portfolio regardless of selection. The fund does not hedge market beta; it manages exposure through the cash buffer, entry-price discipline and catalyst-driven positions whose outcomes are partly independent of index direction.

The strategy depends on a small senior team and their network. Mitigated by the documented 14-stage process (making judgment repeatable), the four-member leadership bench, IC collective decision-making, and board oversight under the VCC’s licence conditions. Key-person provisions, where applicable, are set out in the offering documents.