We informed our investors and partners about our capital deployment strategy at the beginning of the month. We’d like to highlight the note we sent you about our current risk-reward outlook and our expectations for the next two quarters. Having strong fundamentals, our cash flow growth of the portfolio companies has been over 20% in the last one year.
Considering the risk reward to risk on the downside today, we are expecting a correction in the valuation over the next 2 quarters. If we get this right, we would be extremely aggressive in deploying capital and want our clients to take benefit from the situation. We would want them to do the following-
a) A lump sum investment in the fund now is what we would like our investors and partners to consider. Any money you provide us will be placed in a STP account in your name, with the capital invested in liquid assets (there would be no fees on this).
b) If valuations do correct, we would use the funds to increase risk and ensure that we were fully allocated (the capital will move from the STP account to the main account).
c) If we do not get this over the next 6 months (by 30th June 2023) and the money is undeployed, the capital will be returned to the client with no fees charged so that the clients do not lose anything in the interim.
As a part of our ongoing commitment to keeping you informed, we remain dedicated to our SIP program, providing investors with a convenient avenue to regularly enhance their portfolios. We encourage you to explore the benefits of this program for your clients. If you require more details, please don’t hesitate to reach out to your dedicated relationship manager at [email protected].