Wealth & Finance International - February 2017

Wealth & Finance International 72 Carpediem Capital is Investing in India’s Emerging Consumer Companies he maiden fund closed with approximately $30 million in commitments from domestic institutional investors, including the sovereign fund and Ultra HNIs running large businesses in India. Carpediem pursues an active co-invest- ment strategy, and manages an additional $15 million in co-investment accounts. Carpediem’s investments are centered on two broad consumption themes. Carpediem invests in emerging SME leaders that are creat- ing consumer brands or providing organised services that have been traditionally unorganised and fragmented. There is a compelling story underlying each of the investments that echoes the strong underlying demographic changes taking place in India. It is for this reason that India despite its challenges remains a positive story for investment. The demand for branded products and organised services are being fueled by the changing lifestyles and growing income of the world’s largest workforce. As per published data, India expects to add 137 million more people to the workforce by 2020, bringing the total Indian workforce to 752 million. Improving macro-economic conditions and wage growth is also increasing migration to cities which is expected to reach 69 cities with a population of >1 million (compared to 9 cities in the U.S. today). Increasing consumption demand in urban India is resulting in the emergence of many new industries and companies with a significant untapped potential. Carpediem’s focus segments, consumer products & services, consumer finance, healthcare & pharma, and managed ser- vices & skills, cover many of these fast-growing sub-segments including repairs & refurbishment, consumer waste collection services, niche F&B verticals, single specialty clinics, etc. Consumer companies have historically created value, both in India and globally. Unlike other industries, consumer companies typically require growth capital when they are young. Once they reach an optimal size they can fund their growth using internal resources or have access to many forms of capital. Carpediem fills this funding gap and provides <$10 million capital to fast growing consumer products and services companies for a significant minority / control ownership. This market segment in India is significantly underserved, but large. The majority of growth capital and private equity in India typically invests upwards of $20 million, and funds that invest <$10 million are mostly venture funds focused on newer industry verticals such as technolo- gy, e-commerce, AI and life sciences. The market structure therefore ensures limited competition from other pools of capital creating a robust and protected deal flow at attractive entry valuations. This unique positioning also creates a greater number of exit opportunities to other Funds and strategics as Carpediem’s exit point becomes the entry point for most other growth funds. Carpediem has a strong team with a clear vision to best leverage this opportunity. The senior team has complimentary skills and a rich experience in incubating, operating and investing in SME companies. The team has played a key role in building and transforming compa- nies into some of India’s leading consumer and services companies. Abhishek Sharman, the Founder & Managing Director of Carpediem leads the Fund’s investment strategy and deal sourcing efforts. He also spearheads the fund-raising activities. Abhishek has over 11 years of private equity experience, and has invested in and managed 15 port- folio companies and exited a few of them. He previously served on the boards of IKYA Human Capital Solutions, ILFS Education, Sagar Ratna Restaurants, RG Stone and Axiss Dental. Arvind Nair is the Chairman of Carpediem, and has over 30 years of operating experience across retail and consumer companies. He is a key strategic resource to the portfolio companies and their CEOs. Arvind has reinvented the business model as Managing Director of Domino’s Pizza India, led the development and management of 20 malls at DLF, and was previously CEO of UAE’s leading consumer electronics company Jumbo Electronics. Hithendra Ramachandran, Managing Director at Carpediem drives the transfor- mation agenda and people strategy at the portfolio companies. He also manages the operations of the Investment Manager. Hithendra has 15 years of operating and entrepreneurial experience, and has been a Carpediem Capital is an India focused fund partnering with promoters to create India’s leading consumer companies. The Investment team is led by three senior professionals Abhishek Sharman, Arvind Nair and Hithendra Ramachandran.Carpediem serves as an ideal investment platform pursuing a differentiated investment strategy along with creating a customised build and transform framework for its portfolio companies. T 1702WF15