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Fund Investment Philosophy
The investment philosophy of the Capri India Investment Fund (and its primary scheme, the Capri Stressed Assets Fund) is defined by the core thesis of “Good Businesses with Bad Balance Sheets”.
- Focus on Mid-Market Resurgence: The fund targets Indian mid-market companies that possess viable business models and strong underlying fundamentals but are currently constrained by capital structure imbalances, high leverage, or temporary liquidity stress.
- Structured Capital Solutions: The philosophy avoids generic debt or equity; instead, it utilizes tailored hybrid instruments that provide downside protection while allowing the fund to participate in the equity upside once the company is revitalized.
- Active Turnaround Participation: Unlike passive investors, the fund engages deeply in the resolution and transformation process. This includes working with receptive promoters to professionalize management, institutionalize corporate governance, and implement operational improvements to unlock value.
- Absolute Return Target: The fund aims to generate a high gross IRR of 25% by identifying market dislocations where complexity has led to significant mispricing. By focusing on sectors with high growth potential and utilizing rigorous, “documentation-led” diligence, the fund seeks to deliver superior risk-adjusted returns for its institutional and affluent investors.
