Investment Strategy

Evolvence’s primary objective is to generate superior risk-adjusted returns for our investors. Towards this end, we build long term partnerships with top performing private equity fund managers and management teams of high-growth companies which have the potential to become industry leaders.

We have a niche and hybrid strategy which is suitable for an emerging market like India. Our strategy provides diversification of portfolio risks through selection of a number of fund managers with different strategies, vintages, industry & regional focus and enhanced returns through carefully selected co-investments.

Investment Parameters :

  • Investment Size – USD 5-15 mn
  • Company size – Revenues of USD 10-50 million

We invest in rapidly-growing consumption-oriented sectors in India which include:

  • Healthcare
  • Education
  • Consumer Retail
  • Financial Services
  • Agriculture
  • Communication, Media and Entertainment

Fund Investments Strategy

We cover the entire spectrum of private equity investment themes with a particular focus and allocation towards small and mid-market sized investments. Our portfolio fund managers should primarily have the following characteristics:

  • Established track records
  • Consistency of strategy
  • Team Dynamics
  • Deal sourcing abilities
  • Co-Investment Potential
  • Clear and executable exit strategies and options

Co-investments Strategy

We co-invest in opportunities which are generally at the early stages of its growth and have superior growth potential. These opportunities should essentially have the following characteristics:

  • Scope for Scalability
  • Capital Efficiency
  • Transformational potential
  • Identifiable value triggers
  • Competitive advantages
  • Favorable or lesser regulations
  • Healthy operating margins
  • Clear defined Exit potential

Small and Mid-market Focus

Evolvence defines an Indian company with average revenue in the range USD 10-50 million as Small and Medium Enterprises (SME). Our research shows that the SME market in India is underserved, has significantly higher growth prospects and the potential to generate superior returns for investors in comparison with investments in large cap space. The SME space is less competitive, has higher volume of quality deal flows, lower entry valuations and better exit opportunities. SME companies in India produces more than 8000 products, constitute 17% of GDP, 45% of industrial output, 40% of exports, employ 60 million people, generate 1.3 employments whereas it gets only 7% of funding from organized financial institutions.

Domestic Consumption Oriented Theme

Evolvence primarily focusses on sectors that cater to and benefit from the consumption boom in India. Higher economic growth in the recent past has created a huge consumer class and the increasing per capita GDP (currently about $1500), and young population (50% of the population below the age of 35) is driving a new Indian consumer class. Evolvence will invest in sectors including healthcare, consumer retail, education, agriculture, financial services, communication, media and entertainment, housing etc.

Evolvence’s Competitive Advantage

  • Experienced, local on-the-ground advantage
  • First India-dedicated fund of funds
  • Over 8 years of investing with Indian fund managers & companies
  • Team of 8 seasoned investment professionals with 75 years of experience
  • Proprietary network of over 150 relationships with leading fund managers

Partnering with our LPs

  • Open, transparent working partnership with our LPs to act as their ‘eyes & ears’ on-the-ground in India
  • Detailed quarterly call with detailed, comprehensive LP reports
  • Regular investor communications on developments on fund, Indian macro or any other significant events
  • In-house market research presented every quarter
  • Co-investment Program
  • Best practices, transparent reporting
  • ‘On call’ Investor service support
  • Other LP requirements relating State planning/ exit etc.

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