True North Fund VI

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

• 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

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

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)