Investment Philosophy & Process

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Key success factors for credit investments in India

On ground presence to source, understand & manage credit, coupled with processes and risk controls in line with international best practices

SOURCING

UNDERWRITING

RISK MANAGEMENT

On-ground presence

Proprietary origination

Established relationships Local networks for deal and

promoter information

Understanding of local factors

Local - cultural / business factors

Political / other linkages Legacy issues

Regional & local regulations Formal & informal reference

checks

Lender community

Active monitoring

Constant direct contact

Early signs Use of local legal framework for

active management

Lender networks

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Business & Vintage

Investment Philosophy

Yield pick up obtained through (i) tightly covenanted and secured debt exposures (ii) created through proprietary structured debt transactions (iii) of issuers with established businesses and repayment track record, serviced by (iv) low downside risk operating cash-flows

Established Businesses

Strong repayment track record

Strong growth potential

Low / Moderate Gearing

Financial Flexibility

Structuring & Covenants

Financial & Corporate DD

Collateral Options & Structuring

Ring-fencing

Operating Covenants

Personal Guarantees

Monitoring & Risk

Covenants Monitoring

Credit Monitoring

Market / Lender community

news

Site visits, management

meetings

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Investment Process

1Proprietary deal

flow through network of extensive

relationships

2Detailed

Screening of the deal and

Presentation to Investment Committee

3Transaction

Structuring and Preparation and

Signing of the Term Sheet

4Detailed

financial, legal and technical

DD, Final Approval from IC

5Signing of Definitive

Agreements and Closure of the

Deal

6Day to Day

management of the Project and undertaking the

exit

Pro-active & selective origination, detailed due diligence & structuring combined with close monitoring of investments to deliver superior returns on the debt portfolio

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Business & Financial

Flows

Financial Flexibility

and Record

Promoter & Mgmt

Background

Past & Future Trends

Regulatory Backdrop

Demand Supply

Dynamics

Covenants & Reps

Operating Plan

Collateral Package

Business &

Promoter Vintage

Sector & BusinessAnalysis

Financing Terms &

Covenants

External Research Rating Agency, Market & Lender Checks

Empanelled legal & technical agency reports

Established Due – Diligence Process

In-house analysis complemented with technical external inputs as required

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Robust on-going monitoring & management

Periodic management meeting with Managing Partners

Market feedback and report through internal and external research.

Monthly Risk Management calls, periodic site visits, management meetings, operating plan review.

Dedicated 2-member monitoring team for each deal comprising Origination and Risk resources.

3

2

1

4

5

In-house Transaction Management for monitoring of all covenants and milestones.News alerts on all deals for live tracking.

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