Alchemy Leaders of Tomorrow Closed-Ended Fund – Series 2

Fund Snapshot

Investment Philosophy

• Investing in growing firms with strong management teams may provide consistent and better long-term absolute returns throughout market cycles.
• We are interested in companies that address a substantial and rising external opportunity, have a competitive edge in efficiently exploiting those possibilities, and have a scalable business model with a higher-than-average Return on Capital Employed (ROCE) throughout the investment horizon.
• We think that management teams are critical to a company’s success. We are looking for aggressive management that is focused on business outcomes while also respecting governance and resource allocation.
• While growing firms make up the majority of our portfolio, we also invest tactically in deep value opportunities and unusual circumstances that arise as a result of market cycles.

Targeted Industries

• Fintech Neo Banks, Insurtech, Payments
• Logistics
• Gaming
• SaaS
• Foodtech
• Mobility
• Education Tech
• E-commerce (B2B & B2C)

Why Alchemy?

• Vision and foresight: Recognize possibilities early and be the first to market in underserved markets.
• Digitally savvy, tech Adaptability: The ability to comprehend and use new technology.
• Accountability and dependability: Use best-in-class management methods while maintaining transparency and consistency.
• Identify trends early, invest, and put yourself ahead of the curve using strategic and critical thinking.
• Focus on R&D and innovation to create defensible MOATS.
• Set the corporate, social, environmental, and governance agendas with your influence.

Course correction for the Indian economy and its impact:

• As the price-to-quality perceived gap between smaller and larger players narrows, businesses that live on a lack of transparency, reduced costs, and tax evasion will confront major survival challenges.
• Changes consumer behaviour and reduces demand for discretionary/luxury products that were previously bought with cash.
• Savings are redirected to financial assets that are more transparent, liquid, and tax-efficient.
• Demand for tangible assets such as real estate and gold is suppressed.
• Rapid adaptation of locally developed and global technology to meet local needs.

Fund Philosophy

Adapt to a newer tomorrow with the global environment

• Disruptive Technology
• Change in the regulatory framework
• New trade equations
• Geopolitics

Winners of tomorrow

• Understand the role of technology
• Adapt it to their advantage
• Shape consumer behaviour
• Service their consumer better
• Build a leaner business model
• Manage risks better

Investment Options:

Lump-Sum – 100% at the time of investment

Tranches

• For investments made on or before the First Closing (31 January 2022), 40% upfront on or before the First Closing date, followed by 30% before the end of the second quarter closing, and the remaining 30% on or before the Final Closing date of June 30, 2022.
• For investments made between 31 January and 31 March 2022, 50 per cent must be paid upfront, with the remaining 50 per cent due on or before June 30, 2022.
• 70 per cent upfront for investments made between April 15 and June 15, 2022, and the remaining 30 per cent on or before June 30, 2022, for investments made between April 15 and June 15, 2022.

Track Record

• Investment management experience spanning 19 years.
• Alchemy High Growth, Alchemy Capital Management’s flagship strategy, has beaten its benchmark (S&P BSE 500) 14 out of 19 calendar years.
• In May 2002, INR 1 crore invested in Alchemy High Growth might have increased to INR 44.9 crores.

Vintage Size

• Since 2002, one of the few Portfolio Managers in India has been in operation.
• As of October 31, 2021, it manages/advises about USD 1 billion in assets onshore and offshore.

Strong Emphasis on Compliance and Risk Management

• With the implementation of an ethical Code of Conduct.
• With company transparency, client service, and reporting.

Quality of Clients

• Sovereign funds, sophisticated institutional investors
• HNIs with a capital “U” (Limited universe of over 1000 exclusive families and includes eminent individuals across businesses families and professionals).

Alchemy Edge

Deal Sourcing

Independent deal originating capabilities

• Founders’ experience with private investing
• Co-investing opportunities

Hybrid Positioning

• Ability to straddle public listed/private markets
• Best of both worlds with enhanced liquidity

Network of Intelligence

• Deep Eco-system
• Well plugged into VC/PE community

Deep Research Capabilities

• Over 20 years of investment management experience
• Cross-Sector research capabilities

Fund Strategy

• The Fund strategy is to create long-term capital appreciation by investing in such possibilities as I listed Indian stocks, (ii) IPO opportunities, and (iii) any other instruments permitted by Applicable Laws.
• The investment allocation will be Multi-Cap & Sector Agnostic, allowing for stock selection flexibility.
• A concentrated portfolio is one that has no more than 15 stock ideas.
• The goal will be to concentrate on organizations that exhibit the finest characteristics of adaptation to the new economic normal, as evidenced by innovation and resourcefulness.
• “Growth at a Reasonable Price” is Alchemy’s investment philosophy. The strategy is based on the assumption that India is a high-growth country, and that the best approach to profit from this is to find and invest in firms that are best positioned to capitalize on developing local and global possibilities.