Equitree Capital

Equitree follows a 5-step process for Equitree Investment Process;

1. Idea Generation:  Source from proprietary screeners, network intel, and industry trackers Focus on under-researched opportunities with structural tailwinds

2. Deep Research: Plant visits, channel checks, forensic accounting, and promoter background checks Interact directly with management, crossverify with customers and vendors

3. Portfolio Construction: Initial position size: 2-3% Scale to 7-8% based on business execution and market mispricing

4. Dynamic R’sk Management: Reviewing valuations, promoter pledging, shareholding, and business performance through results, channel checks, and competitor benchmarking, while tracking macro and policy developments

5. Exit Discipline: While we are long term and low churn, we exit when valuations stretch beyond fundamentals or execution / governance weakens

Early Stage Identificatior- We back scalable businesses before sell-side coverage or institutional ownership, entering at deep valuations with asymmetric upside

Proactive Value Enhancement– We engage with promoters to offer strategic input on
capital allocation, communication, and governancebringing a bird’s-eye view to unlock long-term value

Investor Al’gnment:– Performance fees charged only at 2x returns or exit. We maintain transparency through regular updates, operating insights and market outlooks

High Conviction, Low Churn – We hold winners-with an 85% success rate (36/42 since 2012)-for 5-7 years to realize full business compounding, helping investors minimize tax impact (LTCG) within the PMS structure (<0.5% churn)

Discovery Premiurm– EAs businesses mature, deliver consistent earnings growth, and attract institutional interest, their valuations can potentially re-rate. Thus improving market cap liquidity and enabling optimal exits.

Advantage Over PE- Our approach brings private equity-level depth with public market agility-allowing us to scale up in highperformers and exit early if thesis breaks No lock-ins, no reliance on IPOs or third-party exits.

Informed Insights- Strong industry network for monitoring business developments and regular channel checks on business

Diversification- Maximum allocation: 10% in a single company, 25% in a single sector

Capital Preservation- Emphasizing downside protection over potential upside gains; staying within our circle of competence

Promoter Diligence- Deep assessment of promoters, including pedigree, reference checks, pledge evaluation and governance scrutiny

Staggered Investment Approach- Utilizing Rupee Cost Averaging to reduce volatility and strategically allocating cash for significant opportunities