Authum has a long and storied history of building a thriving Investments Business which invests in both listed and unlisted equities in India. As on December 31, 2024, the AUM of the Investments Business was in excess of ₹1,12,500 million, and the entire business has been built and scaled up with proprietary capital (Authum had minimal leverage as on December 31, 2024).
Early identification of sectoral and thematic tailwinds
Strong research team and disciplined investment philosophy
Invest in credible market leaders with experienced and pedigree management
Mid to long-term horizon to enable value creation and realization
Select strategic equity (acquire to control) for outsized long-term returns
Authum’s thesis for investing in any company spans across key parameters like market leadership / potential to become a market leader, performance and track record, management quality, and execution capability.
Strong fundamentals, attractive valuation and high potential for re-rating form the cornerstone of Authum’s investment thesis
Focused on large and mid-cap companies which are either market leaders or have a potential to become market leaders in 5-7 years
Investment across themes focusing on turnaround and / or high growth potential Built on clear and monitorable investment thesis with robust review frameworks
Internal frameworks for monitoring the performance of the investment portfolio, vis-à-vis the investment thesis
Key components for investment screening include governance standards, management quality and execution capabilities
Allow a reasonable holding period of generally between 3 to 5 years in most cases, to enable desired value creation
Within the Investments Business, Authum has 2 distinct lines of business, characterized primarily by the size of its shareholding in the investee company and ability to drive:
Based on its proprietary research and evaluation framework, Authum generally acquires a sizable shareholding (between 5% to 15% in most cases) in either listed / unlisted entities.
The investment thesis may be predicated on a variety of factors such as specific sectoral tailwinds, superior growth prospects of the investee company, or on addressing the dislocation between intrinsic value and the current market value of the investee company.
Authum regularly monitors the performance of its investee companies based on publicly disclosed information and carries out necessary rebalancing of its portfolio with the objective of optimizing risk-adjusted returns.
In certain select cases, based on the potential scope of the opportunity and its conviction, Authum may a acquire substantial shareholding (at least 26% and above) in an investee company.
In such cases, Authum's investment thesis is generally predicated on the possible transformative journey of the investee company, which can range across its potential evolution into a market leader, significant business and operational turnaround, or simply sustained long-term outperformance compared to its peers based on the strength of its underlying fundamentals.
Authum believes in proactive engagement with the leadership team of its strategic investments to provide strategic support and guidance wherever necessary, as well as facilitating and supporting the investee companies in building mutually beneficial partnerships with parties in their respective value chain through Authum's wide network of relationships.
