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Investment Strategy

Five complementary strategies

“Alpha is generated during liquidity and ownership transitions — not in fully efficient markets.” The fund concentrates where institutional ownership is still forming: the sub-₹2,000 crore universe and the pre-IPO window before it.

A · Core · 30–40%

QIB & Anchor Investments

Qualified Institutional Buyer and anchor participation in IPOs, FPOs and public issues — assessed on fundamentals, valuation, governance and post-listing liquidity. Priority allocation with a defined liquidity horizon; valuation and institutional demand are tested at entry.

B · Primary · 20–30%

Small & Micro-Cap Listed

Listed companies below ₹2,000 crore market value with limited institutional ownership or analyst coverage, showing emerging earnings, governance or liquidity improvements — entered before broad institutional adoption re-rates them.

C · Balancing · 10–20%

Mid-Cap Listed Equity

Selective mid-caps with sustainable earnings growth, strengthening balance sheets and sectoral re-rating catalysts — including threshold plays on increasing FII/DII eligibility. Portfolio balance with upside participation.

D · High-Alpha · 15–25%

Pre-IPO & Unlisted Secondary

Late-stage private companies via pre-IPO placements and unlisted secondary transactions. Negotiated entry valuations — typically at meaningful discounts to expected IPO pricing — with an identifiable liquidity event (IPO, strategic sale or block deal) and a defined holding period of roughly 6–24 months.

E · Opportunistic · 5–10%

Special Situations

Preferential allotments, rights issues, warrants, corporate actions and temporary dislocations caused by non-economic or forced selling — each position evaluated independently on risk-reward asymmetry and exit clarity.

Reserve · 5–10%

Cash & Liquidity Buffer

Held to meet quarterly redemption windows and to act when dislocations appear. Strategic allocations sum to 100%; the fund employs no leverage at any level.

Allocation ranges follow the fund’s FSC-authorised investment policy. Actual allocations within these ranges are at the investment manager’s discretion.

Process

From idea to investment — a six-filter discipline

Deal sourcing

The Equisculpt Ventures network: SEBI-registered investment and merchant bankers, direct promoter relationships, and sector-specialist scouts on the ground.

Initial screen

A six-filter quantitative screen — sector and market-cap fit, SEBI compliance validation, and promoter background checks before any diligence spend.

Deep diligence

Three-year financial model, legal and regulatory review, industry expert interviews, and on-site management visits.

IC approval

Investment Committee review against a risk-adjusted return model, entry price negotiation and legal documentation — with a 48-hour decision window when allocation windows open.

Portfolio & exit

Continuous monitoring, quarterly NAV reporting, and execution of the exit identified before deployment — listing, block deal or strategic sale — followed by investor distributions.

Risk Controls

Risk is managed through selectivity, structure and discipline — not leverage.

  • No leverage — the fund employs no leverage at any level.
  • Selectivity — position-size and concentration limits are enforced.
  • No speculation — no high-frequency or algorithmic trading.
  • No passive drift — unconstrained by benchmark or index.
  • Exit first — the exit pathway is identified before capital is deployed.
  • Currency — INR depreciation managed via NDFs and currency markets.