Investment Philosophy

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Focused on absolute, risk adjusted return 

Theme Identification: 

Identify big growth themes and special situations for both tactical and long-term investments.

Bottom-up Construct: 

Within the identified theme, we filter out companies with better risk adjusted return characteristics. We use a combination of proprietary sector models, earnings / balance sheet analysis tools, risk assessment frameworks to further narrow the field for investment.

Quality of Management: 

this forms the bedrock of our investing philosophy. We look out for entrepreneurs with passion and a hunger to win. The individual must demonstrate both vision and execution capabilities. Our firm belief is that a good horse is still not winnable unless combined with a good jockey. 

Quality of Business:

runway for sustainable growth, capital allocation decisions, investment into IP, comparison of key operating metrics against industry benchmarks, scalability potential and right to win incremental market share / business share etc. are some of the points we look out for.

Growth Drivers: 

Assessment and mapping out of key catalysts and immediate triggers for both the company and the stock.

Bet Sizing. Collaborative Assessment 

Get the Expert Involved: 

Over the last 3 decades, Madhu (and the team) has built a strong set of relationships with experts across every sector and domain, capability area. MK Ventures leverages on these relationships to get highest levels of access to multiple expert minds within the chosen sector / domain, to complement and reinforce our own thought process on the potential investment candidates. We have perfected and internalised this approach over the last several years, thereby creating our own differentiated investment style.

Ecosystem Approach: 

Every successful company, by default, builds a strong ecosystem around it. No company can succeed in isolation. We build our analysis on this maxim, to try and evaluate the company’s position and importance in the value chain, and take feedback from multiple stakeholders connected to it – both internal (employees) and external - suppliers / clients / trade channels / competitors / existing investors etc.

Multiple Assessment Lenses: 

Using the above approaches of internal assessment and collaborative assessment, allows us to potentially evaluate the company from every conceivable angle before taking the final investment / position sizing decision. The multiple expert lenses help to reduce the risk and to set up an asymmetric risk reward investment.

Execution Success and Monitoring

Valuation & Value Creation

We seek attractive entry points rather than chasing the idea. And wherever possible, we align other strategic investors and the experts with us in the process, ensuring we benefit from partnership with stakeholders that are highly motivated for the company to succeed. 

Monitoring: 

Expert team now in place to guide, advise, accelerate and monitor investment to ensure substantial growth and best risk reward outcomes are achieved

Exit Strategy: 

We map out very clearly the key triggers for the investment on either positive or negative side and have well defined exit strategies for both tactical and long-term investments.