Fund Snapshot
Share Class Structure
Class A4: INR 25 Cr – INR 250 Cr
Class A6: INR 3 Cr – INR 25 Cr
| Fund Category | SEBI approved CAT II – AIF (Close Ended) |
| Sponsor & Manager | True North Managers LLP |
| Trustee | True North Fund Trusteeship Entity Private Limited |
| Final Closing | 18 Months from Initial Closing |
| Commitment Period | 5 Years from Final Closing |
| Placement Fee | 1% Upfront at the time of commitment |
| Upfront Contribution | 5% of Capital Commitment |
| Minimum Commitment | INR 3 Cr |
Business Philosophy
Our goal is to create globally respected and socially conscious companies that provide industry-leading profits for all stakeholders while positively influencing society. Our idea of always carrying out tasks “The Right Way” is one thing that has remained constant.
Opportunity in Private Equity
Opportunity
- Access to a large pool of unlisted businesses in new and growing industries
- PE investments with sizes close to public markets
- Take part in a controlling or significant minority investment
Value Creation
- Select the appropriate sector
- The capacity to change, assemble the ideal team, and plan
- Create a solid board and governance structure.
Outcomes
- Delta v/s public markets: Delivers material alpha Key Risk: Illiquidity
- Private Equity (PE) v/s VCs: Runs the lower risk
The Purpose and Value of True North
- Deliver industry-leading risk-adjusted returns throughout economic cycles by creating or collaborating
- With lasting, profitable firms that practice social responsibility.
Vision
- Build a business: Purpose & focus, speed & simplicity, excellence
- Conduct business: Uncompromising integrity, transparent dealings & relationships, mindfulness of the environment & society
- Partner in business: Respect, teamwork, believe people are fair in their conduct
Focus Sectors
Information Technology Technology Industry Strategy Pillars
- Partnership model with Corporates / Management teams
- Opportunistic investments in listed technology companies
- Opportunistic investments in new-age technology companies
Opportunity in the space
- Focus sector for True North since 2018
- Dedicated senior team and resources across the TN team to ensure best-in-class execution
- True North has made one investment recently (QUEST) from Fund VI and has evaluated over 150 deals
Why Invest in True North
- First time in 23 years, True North – a top-tier PE firm, is raising money domestically
- Delivered 23% Gross IRR1 on realized portfolio & Tracking 20% Gross IRR1 on our NAV
- No True North Fund has lost capital to date
- Relatively tax efficient for investors (through 40% listed exits)
- The benefit of diversification across Time / Sectors / Investment concentration within the Fund
- Low re-investment risk
Investment Strategy
Invest in 12–151 successful, mid-sized companies focusing on India. Our investment approach selects rapidly expanding and structurally appealing niches in our focal industries.
- Target Returns (Pre-tax): Gross IRR 23% – 25%, Net IRR 18% – 19%
- Taxation (expected): Long Term Capital Gains (40% exits through listing)
- Focus Sectors: Financial Services, Healthcare, Consumer & Technology
- Target Strategy: Mix 75% Native/ Traditional 25% Digital-first
- Concentration Limits: <40% Single Sector <10% Single Investment
- Average Hold Period: 4 – 6 Years
- Avg Ticket Size: INR 450 Cr to INR 675 Crore
- Fund Tenure: 10 Years from Final Closing
- Hurdle (Pre-tax): 10% Internal Rate of Return
- Management Fee: 2% p.a. plus applicable taxes
- GP Share of Profits: 20% (with 100% catch-up)
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