Thorough macro and micro research forms the foundation of our investment process. We search for the unidentified, understudied, underappreciated, and under-owned. We acknowledge that key ratios and valuation metrics are reliable.
INVESTMENT STYLE
Our investment strategy centres on a long-term, value-unlocking strategy:
Approach with a management focus: We firmly believe that the enthusiasm of the promoter drives Indian companies.
Our goal is to transform the company from a business that is run by promoters to a business that is professionally managed.
We invest in businesses adopting a "Person 2 Portfolio" approach, designating an analyst from our team to reflect the management of each company we invest in.
Concentrate on smaller, higher-quality transactions (Average of One Transaction per year over the last 5 years with yield in the range of 5-10x)
As shareholders, we assume responsibility for our portfolio companies long-term value creation by concentrating on the following important points:
| 1 | A renewed emphasis on business strategy |
| 2 | Encouraging operational excellence |
| 3 | Social responsibilities, environmental sustainability, and corporate governance (ESG) |
| 4 | Maximizing market communication and capital allocation |
| 5 | Developing relationships |
This aids in our efforts to close the multiple gap and raise value above
| 1 | As the company expands, we aim to take steps to ensure that it remains true to our common goal and that we stay committed and invested. However, we reserve the right to divest at any time if events turn out differently than we had anticipated. |
| 2 | A successful cycle typically lasts five years, and our goal is a 5-10x multiple return on our investment. Our exits are always made through the public stock exchanges (BSE, NSE), and buyers can include mutual funds, private equity funds, AIFs, FPIs, and HNIs investors. |
| 3 | Niveza maintains an annual dividend distribution policy, and all investors receive payments upon exit. We then replicate the investment process with the addition of experience, wisdom, and the passage of time. |
INVESTMENT PHILOSOPHY
We make investments across all industries.
Investments have included companies in specialty chemicals, carbon, electro-magnetic & electrical, synthetic yarns & fabrics. After extensive due diligence supported by years of in-depth research, we hand-pick companies.
