Investment Value Creation
KPEG believes that a truly valuable investor is a source of skills, know-how, experience and support that complements the entrepreneur's resources and acts as a catalyst in company's growth.
Our approach of partnering to build leaders of tomorrow has two cornerstones. First is to provide capital with a long term view. And second, to create a functional partnership in which Kotak Group's counsel and operational support help amplify the entrepreneur's skills and experience.
In this equation, the entrepreneur brings in leadership, operational management, specific industry know-how and experience together with the vision, concept and ambition. For its part, besides capital the KPEG provides:-
- Expertise in business growth
- Strategic Inputs
- Problem solving competency
- A committed sounding board and
- A broad domestic and international network of business contacts
Strategic Support
We adopt a partnership approach in dealing with our portfolio companies. Our Investment philosophy is based on actively working with the management teams of the portfolio companies to help them become leaders in their respective fields. As "Partners in Progress", portfolio companies find us helpful and resourceful in multiple ways.
- Strategy: Through active Board participation, we help the portfolio companies fine tune their business strategy and growth plans.
- Budgeting: We actively work with the management teams to prepare realistic budgets and create an execution plan and systems to monitor the variances.
- Systems and processes: We strongly believe that the companies need to manage growth and not let growth manage them. We help the companies in building robust internal systems and processes and an effective management reporting system.
- Financial engineering: Our portfolio companies benefit from our significant expertise in financial engineering and structuring optimal financing instruments.
- Technical assistance: We organize external technical assistance for our portfolio companies on issues such as supply chain management, inventory control, channel management etc., though our partner's access to international network of consultancy organizations.
- Assistance in hiring senior management team: We use our extensive domestic network of relationships to help broad base the Board and hire senior talent.
- Network development / Access to markets: We help our portfolio companies in providing market research and global trend analysis and actively work with them to develop a regional and/or global market strategy that requires insights that go well beyond the local market. We use our network to introduce these companies to newer markets, customers and suppliers.
- Provide visibility: The association with Kotak and access to the various resources within the group provides our portfolio companies with the necessary platform to generate visibility and presents lucrative opportunities to enhance its profile and outline their vision.
- Preparation for an IPO: We assist our portfolio companies in establishing good corporate governance standards. Our team, with its rich experience in the domestic capital markets, collaborates with the management of the portfolio companies to help them plan the timing of its IPO, attract and select the investment bankers, strategize the public positioning of the company within its industry group and help attract investor research coverage.