True North Fund VI

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About True North AMC

True North was once known as India Value Fund Advisors and dated back to 1999. (IVFA). The company was established to invest in mid-sized, successful, India-focused businesses and develop them into top-tier industry leaders with a sound value system. Our investment approach selects structurally sound and rapidly expanding market categories that either meet domestic consumer demand or use India’s advantages to serve international markets.

Our collaborative, value-aligned strategy produces globally respected and socially responsible firms that provide limitless value for all stakeholders. We are known for our investment philosophy of doing things “The Right Way.” Future company leaders and entrepreneurs who likewise share this vision are individuals we hope to work with.

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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For any queries, contact us on Mobile: +91 95616 10108, Landline: 020-48627339,Toll Free: 1800 210 1995, Email: [email protected]     Whatsapp-logo

Disclaimer: Investing Involves Risk. This document is for information purposes only and should not be viewed as a legal offering document or solicitation. Offers to invest in this fund are made only by the Discretionary Portfolio Management Services Agreement. Past performance does not guarantee future results and there is no assurance that the managed accounts will necessarily achieve their objectives. We do not guarantee any returns in the hand of investors not we take any sort of accountability for the performance of the scheme. The above-mentioned data is collected from the respected Fund house please verify the same at SEBI website.