Strategy D · High-Alpha · 15–25%

Pre-IPO & Unlisted Secondary

Late-stage private companies entered through negotiated pre-IPO placements and unlisted secondary transactions — typically at meaningful discounts to expected IPO pricing, with an identifiable liquidity event and a defined holding period. The highest-alpha sleeve, and the most deliberately capped.

Role in portfolio: High-alpha sleeveEntry prices unavailable to any public-market investor — capped so illiquidity never dominates the fund
Target allocation: 15–25% of the portfolioA hard policy range — the sleeve is never the fund’s redemption source
Opportunity: Pre-IPO discounts at five-year highs after the 2024–25 consolidation, against a record IPO pipelineCheaper entry and more abundant exit, simultaneously
What creates alpha: The negotiated discount plus the private-to-public re-pricingIn the group record, 80%+ of pre-IPO deals were oversubscribed on day one of listing
Investment criteria: Credible listing path, enforceable documentation, promoter quality, discount adequate to the riskStage 7 (legal enforceability) and stage 10 (fallback exit) are decisive here
Typical holding period: 6–24 monthsDefined by the liquidity event, not open-ended
Liquidity: Illiquid until the event; post-listing lock-ins applyPriced into the entry discount, ring-fenced by the allocation cap
Primary risk: The IPO not happeningThe group’s record includes a withdrawn IPO (−47%) and an impaired, non-exitable position — both disclosed on the track-record page
Exit framework: Primary: the listing. Fallbacks: strategic sale or secondary blockA position with no credible fallback is not taken, whatever the upside
Research process: The heaviest diligence load in the fundPrivate information, no market price, no public paper trail — stages 3 through 10 in full
Catalysts: IPO filing · DRHP approval · anchor book demand · strategic interest

Evidence — both directions. Realised: Indian Emulsifier +126%, Tembo Global +147%. Open marks include KRN Heat Exchanger (+610%*) and also Spray Engineering (−47%*, IPO withdrawn) and an impaired position — the full book, gains and losses, is on the track-record page. Group advisory record, not this fund; unrealised marks are not returns.

The Pre-IPO Book All Five Strategies