A Unique Deal Management Approach
Ananta Capital started as India's first Pledged Capital company with perhaps the most unique investment strategy in India currently. Ananta Capital manages "pledged capital" on behalf of strategic and financial investors and seeks to provide its management expertise in managing growth equity, control and buyout transactions.
We deliver our management expertise to PE funds and strategic investors focused on both growth equity investments (significant minority stakes >25%) and control stakes (>51%) in privately held, SME-Midmarket companies in our target sectors of Advanced/Speciality Materials and Clean Tech. We work with investors to provide the operations and portfolio management expertise needed to deliver value in manufacturing/speciality technology situations. We also source deals using our embedded networks globally.
Characteristics of Target Companies
- Profitable companies with some fundamental manufacturing or technology differentiation (manufacturing or technology driven companies that either have a strong market position or the ability to create paradigm shifts with technology)
- At least 5 years of operational history for most targets
- Typical sales of Rs. 35 Cr (~US$ 7.5 Mn) to Rs. 350 Cr (US$ 75 Mn)
- Strong earnings profile – average EBITDA margins of >10-15%
- Strong revenue growth potential – set to grow at a minimum of 2-3X of GDP
- Typical equity infusion requirement of $10 - 30Mn
- Supernormal return expectations: >30-35% gross IRR in base case
Why are we different?
- Niche sector orientation: The Advanced/Specialty Materials domain is a niche and exclusive sector in India. With growing infrastructure spend and rapid development of technology, this space will witness over 2-2.5X of GDP growth rate across segments. We are the only operating manager with deep expertise in these high value opportunities given our exclusive know-how. Similarly, Clean Tech is rapidly growing at over 20-25% as an attractive investment space in India. Here too, we are one of very few operating teams which have the relationships to create exclusive access to deals.
- Significant operating and business building experience: As an operating team, we have had significant experience (combined experience of over 70 years) in building and operating companies. Consequently, we are best equipped to create fundamental operational value within high growth investment opportunities in our target sectors. Moreover, we have the relationships internationally and within India to enable growth by supporting companies through supply chain, end customer and technology introductions.
- JV style of investing with investors and entreprenuers/promoters: We believe in the philosophy of co-creating wealth – be it for Investors or for the Entrepreneurs that we work with. Hence we have developed a model of working alongside investors and entrepreneurs in an embedded fashion to create sustainable value for investments.We take very active roles in portfolio management with board participation and provide operational support on behalf of investors to entrepreneurs/ promoters through additional management bandwidth (experienced management professionals in full time roles or outside-in consulting support)
Please Contact Us for more information on our strategy.