True North Fund VI

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Category AIF Category II

Company True North Fund VI

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)