Manish Jha

Funding winter moderated, investors now have clarity on capital allocation, says Yashraj Erande of BCG To what extent has the funding winter stabilised? How are investors reshaping their strategies for capital allocation? What key shifts have FinTechs experienced over the past two years? And where will the next wave of capital come from? In this episode of FinTech Diary, Yashraj Erande, MD & Partner at Boston Consulting Group (BCG), unpacks the surrounding questions. In conversation with Amol Dethe #ETBFSI #BFSI #FinTech #FundingWinter #CapitalAllocation #Investors #Startups #FinTechTrends #InvestmentStrategy #BusinessGrowth Watch here: https://lnkd.in/gSQtRQYy

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Taking a company public for the first time requires navigating uncharted territory. As IPO consultants in India, we will guide you through the process, helping you understand the importance of developing a robust IPO strategy and the key factors to consider. https://lnkd.in/gT5cY89a #SMEs #IPO #IPOconsultants #IPOstrategy #Publicoffer #Corporatefinance

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Changing investment strategies within Family Offices in India I recently delved into a report on the evolving trends within family offices, and the insights are quite compelling. Family offices are no longer just focused on wealth preservation; but are now actively looking for alternative investments with an aim to create wealth for the next-gen. Here's a quick walkthrough of my understanding of the report: 1. Professional Management: Family offices are increasingly hiring professionals with extensive networks and deal-sourcing expertise. This shift is enhancing their ability to assess and secure viable investment opportunities. 2. Direct Startup Investments: A significant number of family offices are now investing directly in startups, even amidst a funding drought and lower valuations. These investments are strategic, often with majority stakes and clear exit paths, reflecting the patience and long-term focus of family offices. 3. Investments through Alternative Investment Funds (AIFs): Globally, 50% of family office assets are in alternatives. In India, this figure is currently 13% but is projected to rise to 18% over the next three years. AIFs offer diversification, helping to mitigate some of the risks associated with direct startup investments. The demand for structured instruments in India is clearly on the rise. 4. Sector Preferences: Family offices are showing a strong preference for consumer goods, fintech, and financial services when investing in startups. These sectors align with their strategic goals and offer significant growth potential. 5. Shift from traditional Real Estate assets: There’s a noticeable trend of reallocating funds from traditional real estate to alternatives like AIFs, venture capital, and private equity. Interestingly, the real estate sector's growth seems more driven by CXOs monetizing ESOPs than by family office investments, as evidenced by a 3-5% decrease/ expected decrease in allocation to real estate assets. 6. Growing AUM: India is home to over ~300 family offices currently and the cumulative AUM is expected to grow by 14% in the next three years. This growth underscores the increasing importance of professional wealth management in India. As family offices continue to professionalize and embrace innovative strategies, they are set to drive significant growth in the alternative investment landscape. Moving beyond mere preservation, they are actively contributing to wealth creation, ensuring the sustainability of family legacies—a welcome evolution! A big thank you to Sundaram Alternates for the insightful report :) #sectorupdates #familyoffice #AIF

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Balancing Investment Attraction and State Ownership: Maximizing the Value of Nonproductive State-Owned Assets. Whenever a country attempts to raise funds, the interaction of fund-raising strategies with various political, economical, and social issues creates complexities. Hence, strategies should be devised in a way which has the least negative impact on any country. This article focuses on SONPA, which is synonymous with state owned unused pieces of land, nonproductive industrial assets, and public infrastructure. And so, maximizing countries' potential requires effective strategies for leveraging and managing these assets; SONPA's implementation necessitates a delicate balance between attracting investment and safeguarding national interests. As a starter, to minimize bureaucratic and corruption risks, it is highly recommended to use a framework that outlines how these assets will be made available to foreign investors. There have been several countries that have successfully attracted investments through special economic zones (SEZs), including Saudi Arabia, Egypt, Dubai, Taiwan, Nigeria. Through tax incentives, streamlined regulations, and infrastructure support, a SEZ could be an ideal structure to attract the right investors: again, it is crucial to maintain state sovereignty by balancing investment and state ownership to attract foreign investors. Also, to give the right signal to the market, clear rules, investment conditions, contingencies, milestones, exit strategies, and valuation of assets are crucial to ensuring that investors can easily invest, realize value, and repatriates capital and returns. Sez structure is limitless when it comes to finding ways in which funds can be used and deployed while maintaining state ownership. The establishment of SEZs on nonproductive land would offer investors incentives while maintaining state ownership (e.g., lease, right of use, freehold, local/foreign LLC ownership). This balance is crucial to maintain wealth for future generation. It also is possible for an SEZ to contain non-performing industrial assets, such as non-performing or "failed" factories. Likewise, a new investor will require new governance structure, an approved business and operation plan. It is always possible to establish ownership based on returning an acceptable IRR to the investor before relinquishing its equity (staying below a threshold for equity ownership). It could be used to revitalize failed state-owned old factories without loosing control. Moreover, an airport could be designated as a SEZ to modernize and enhancing its operation, while establishing a portion of it as an innovation zone for alternative fuels, or an advanced transportations techs hub, i.e.: UAVs As a conclusion, to preserve, and enhance wealth for future generations, it is paramount that the host country maintains ownership of its national assets, irrespective of deal structure, funding priorities, or other sovereign considerations.

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Was nice to share some thoughts with Akshata G. and Financial Express (India) on SEBIs new proposed fixed price mechanism as an alternative to reverse book building for voluntary delisting schemes. Read on to know more: https://lnkd.in/g25YCj_D #SEBI #delisting #law

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