Knowledge Conclave

Discover the Leader Inside You

02/07/2020

We are also very pleased to share with you the below link for the Webinar recording “Discover the Leader Inside You!”.

We had more than 250 participants attending the webinar from around the world. The session was moderated by Sagar Agarvwal, our CIO & MP, Nimai Capital while our Guests speaker was Dr Anil Khandelwal.

Meeting Recording Link: https://drive.google.com/file/d/1UyxXjddRJzuvx9HOSjVeCwbJk0KU8zYC/view?usp=sharing

Please see below Key Takeaways from the Webinar:

1) Mahatma Gandhi has given us an apt definition for Leadership – You must be the Change you want to see in the World

2) Leadership is a $300 Bn industry across webinars, books, conferences, podcasts etc yet it lacks the depth required to create Great World Leaders

3) Leadership is within us & it is Hierarchy Neutral. Leadership is a Disciplined Practice. “Leaders should significantly inspire & motivate a significant amount of people”

4) Leaders need to exhibit Trust, have a higher Vision & Purpose, have a Passion for Change, create an environment of Empowerment, build Credibility by doing more & saying less, be Compassionate & Meritocratic at the same time, be excellent in Communicating & Listening, be open to Criticism, create a Feedback loop & Reflect to climb the Ladder of Leadership

5) Similar to our Mind & Body, to grow the Leadership Fitness tree within ourselves, Leaders should inculcate the habit of Physical, Professional, Emotional, Ethical & Spiritual Fitness. 80% of our success is defined by our EQ & 20% is defined by our IQ. Know thyself to uplift your EQ

6) Create that magical 25th Hour to learn & to become fit emotionally, ethically & spiritually. Robin Sharma recommends learning something new every 90 days!

7) Leaders should reveal & reflect, should be accessible & be in touch with the ground reality, customers, employees & all stakeholders.

8) Leaders should not only focus on their Company or the Organization alone but also think about how they are contributing to the Society, Community, Environment & people in general.

9) Demolish yourself to become a transformative leader, learn – unlearn – relearn!

How will Private Equity Evolve in a post COVID Scenario & Potential Investment Themes

13/06/2020

We are very pleased to share with you the below summary of Nimai Capital’s First successful Webinar “How will Private Equity Evolve in a post COVID Scenario & Potential Investment Themes for Investors” which was scheduled on 13th June. We have initiated this Knowledge Series from this June as Nimai Knowledge Conclave where we will bring Global Thought Leaders to share their views on Relevant Industry Subjects with our Colleagues, Investors & Patrons.

Event was led by our CIO & MD, Sagar Agarvwal while our Industry Thought Leaders for the event were:

  1) Kemi Christina Abdul, Direct at Mubadala Infrastructure Partners

  2) Dinesh Tiwari, Managing Director at Broad Peak Capital Advisors

  3) James Stull, Partner at King & Spalding, UAE

Please see below a brief summary of the Webinar for your ease:

Kemi: PE Industry has been playing a very important role in Economies & Capital Markets. Current industry AUM of $4 Trn, a 135% increase since GFC. Huge Capital being Raised - $600 Bn in 2019. $2.5 Trn in Dry Powder (Capital ready for Post COVID). Bigger than GDPs of most nations. Top 10 Global PEs take away 45% of the capital. More LPs are looking at PE despite higher valuations due to diversification, exposure to different geographies & sectors, more long term, patient & stable returns relative to public markets. PE can ride out any crisis & give healthy returns in the long term. Private Equity has outperformed public markets by 5% to 10% over a 3, 5, 10, 20 year basis. Value Oriented Private Equity Funds have outperformed better by 400 – 600 bps compared to non-value oriented Private Equity Funds. COVID impact on the economies is still in early stages. Demand & Supply recovery will be more clearer by the end of the year. PE Firms will aggressively deploy capital compared to 2008 due to FOMO & also support existing companies with more capital as they are better prepared from 2008 GFC. PE firms have built strong operational teams, have more access to data, record low interest rates & central bank infused liquidity to navigate this crisis. Funds established during GFC have outperformed & generated significant returns post Crisis.

James: Funds are definitely re-contemplating some of the clauses in the agreement such as Force Majeure & most deals have been gone through re-pricing conversations. Funds also contemplating if they can use Bankruptcy Clauses in Middle East which was introduced for the first time last year. Lots of funds in the Middle East are also undertaking deal by deal transactions post Abraaj fallout as LPs are risk averse in the region towards blind pool funds. Majority of the PE deals in pipeline this year have been completed & more activity is seen post May from Sovereign Wealth Funds, family offices & PE managers. Sectors: Ecommerce, Fintech, Edtech, Health-tech & Logistics Tech is seeing a lot of traction. Fund managers are also hunting for distressed opportunities as there are a lot of value buys available in the market. Re-pricing conversations are happening more around Travel, Hospitality & Education. More demand from LPs for sector focused funds than generalist managers. Also increasing demand for venture capital funds due to recent successes in the region. However there is a bit of an overlap between what VC & PE funds are doing today.

Dinesh: Investors needs to be cautiously optimistic as COVID is not completely under control. There are several interesting themes & trends cropping up. We see more opportunity in Tech opportunities due to acceleration of people moving online especially due to WFH, Healthcare delivery & Health tech have become more critical & people are increasingly waking up to realising the need to have healthcare planning, de-coupling of supply chains & manufacturing moving more closer to home. Distressed opportunities will be a big winner, increased scope for consolidation across sectors, businesses will have to think more digital & build on it. Listed Investments have also become attractive due to sharp corrections & there will be some demand for PIPE investments from PE managers (subject to diligence). Online sectors will acquire lions share of capital going forward especially Education & Gaming.

Q&A: ESG, Impact & Responsible investing is also taking centre stage amongst LPs & Private Equity Managers globally. In Public vs Private discussions, valuations & liquidity are certainly attractive but ability to deploy large chunks of capital will be challenging. Managers who are solely relying on Agreements could face a lot of enforceability challenges. There is demand for liquidity preference clauses amongst credit funds. Travel, Hospitality & Retail industry will go through debt restructurings/mergers & survivors will become winners in the medium to long term.