Fund Raising Program

Alternative Investment Fund

Focussed on Mid Market
Distressed Assets in Select
Alternative Investment Fund
Sectors in India Oct 2019 /Fund Raising
 Mindstone- Introduction

Background
Mindstone Maven LLP, founded in 2016 by seasoned banking and finance professionals with collective

Origin &
experience of over 100 years. Mindstone brings diverse experience pool from across financial services
industry from working with public sector, private sector, and foreign banks operating in India and abroad.

During last three years of existence, Mindstone has handled & executed several key assignments with
Credentials focus towards mid market enterprises in diverse sectors like healthcare, education, manufacturing, food
Market
Realise Value”

processing etc. The nature of transactions include Project Advisory, Fund Syndication, M&A, Strategic
“Discover Opportunities

Advisory, Strategic Investments (proprietary), Distress Management etc

Optimise Resources

Business model is to create a horizontally integrated hybrid model based on following levers:
Business
Model

 Advisory Services – Capital raising, Project Advisory, Strategic Advisory, Distress

Management, M&A
 Financial Intermediation– Syndication, Lending & Strategic Investments (including
co-investment model)

Mindstone is creating Alternate Investment Fund (AIF) arm is an essential element of this integrated
Market synergy
through AIF

approach which is aimed towards two-way synergy with existing Advisory Business which creates superior
market penetration and intelligence. The differentiated model has significantly improved risk-reward
profile and potential to create a robust integrated ecosystem to create multiple revenue & value drivers.
Mindstone has already started opportunistic & strategic investments through its existing balance sheet.
Mindstone Group: Holding Structure

Strategic  Proposed holding company likely

Founders Investor to be formed shortly
70% 30%  It will be an Operating Company,
with defined roles of managing

Mindstone Group Group’s investment in various

Holding Pvt. Ltd. assets
 Main roles of this Company
~70% ~10%
~70% are recorded below:
• Owner of the Mission Statement;
Angel & Sweat
Sweat Limited Partners
Commands; Growth Plans;
~30%
~30% ~90% Coordination; Synchronisation;
Integration of subsidiary company

Mindstone businesses; Group activities;

Strategic Mindstone Mindstone
Maven LLP Trellis Unifying cross-functional efforts
Investments AIF
(Fintech)
Operational

WIP
Assets to be transferred to AIF
Other stakeholders
Investment Strategies
Key Sectors
• Select Manufacturing- core economy
• Productive/deep-discount real assets-
commercial RE, logistics etc
• Agri based including Agri-tech
• Food Processing
• Healthcare including Health-tech
• Specified IT
Portfolio Composition (per portfolio)
• Distress - 50-60%
• Good Assets – 35-45%
• Cash- 5-10%
• Minimum sectors - 3
• Maximum sectors -5
• Average life cycle- 5 years
• Minimum exit period- 3 years
Instruments & Control
• Convertible Preference Shares
• Convertible Debentures
• Structured Debt
• Board/ Financial control
• Protective Provisions
• Asset Backing- portfolio level
Risk & Exit Management
• Ring Fencing - Closer to Cash
• Risk Distribution- Co-investment approach
• Risk Control- Management Bandwidth
• Exit Strategies- Financial Mainstreaming
• Exit Strategies- Replacement/ Leverage
• Exit Strategies- Consolidation (M&A)
Mindstone Leadership Team

Credentials:
Credentials:

Career Banker of 30+ years
 Career Banker of 20+
experience with State Bank Group,
experience years with SBI and
Mashreq, IndusInd Bank, and Axis
Bank in various verticals of Axis Bank.
banking, such as Treasury &Trade  Wide experience in spaces like
Finance, Relationship SME Lending, Trade Finance,
Management, Government and Retail Lending, and Credit
Business, Branch Management, Risk Rating Systems.
Karan Butalia Amit Kumar
Senior Partner Human Resources and IT. Partner  Amit specializes in SME

Mr. Butalia has headed large
Academics: Academics: financing and risk evaluations.
 Axis Executive geographically dispersed teams as a
 MBA, Delhi School of  Wide practical experience of
Leadership Program, business leader.
Duke Corporate Economics working on development of

He has been a Chief Business
Education  Master fo Financial
Relations Officer of Axis Bank, Machine Learning based
 Diploma in Advanced
Analysis (ICFAI)
Strategic Management, responsible for relationships with applications and Artificial
IIM Calcutta  Bachelor of Science
Central & State governments, and Intelligence-linked business use
 Masters in International (Hons.)
Business, IIFT, New Delhi regulatory bodies. He represented cases.
 Masters in Business the bank’s perspectives on various
Economics, Delhi economic and banking matters to
University
 B.A. (Hons), Economics, the governments, and vice-versa.
SRCC, Delhi University
Mindstone Leadership Team

Credentials:
Credentials:
 Career Banker of 20+ years experience with SBI
 Career Banker of 20+
and Axis Bank Managed debt facility book size
experience years with SBI and
of >USD 5 billion.
Axis Bank  Satyanjay played lead role in setting-up Axis
 International market exposure Bank’s international presence in Singapore,
in Dubai International Financial Hong Kong, DIFC (Dubai), Shanghai, other Rep
Centre (DIFC), Dubai with Axis Offices.

Bank Satyanjay Tripathy  He has also been the Lead Architect of India's
Subash Prasar
Managing Partner  Wide experience in Investment Managing Partner first enterprise-wide Payment-Hub launched by
Academics: Axis Bank.
Academics: Banking, Syndication Banking,
 CEP (Corporate  Also designed and implemented National
 CFA, CFA Institute, Credit, Trade Finance, Credit
Strategy), SJMSOM, IIT Pension Scheme trustee bank collection
USA Operations
Bombay algorithm and IT system
 CAIIB  Headed credit & syndication
 Bachelor of Science  Developed & Implemented ‘FasTag’ (RFID-
 Bachelor of Science
team of Axis’s DIFC (Dubai) (Hons.), Banaras Hindu tolling) on NHAI roads in India.
(Hons.), Electronics
Branch and had built a book- University  Fetched license for Axis Bank from RBI to
size of USD 2.5 billion from launch TreDS in a competitive bidding process

scratch and managed debt assets  International market exposure in Hong Kong

of USD 10 billion+ book  Holds vast experience in Corporate Strategy,

Syndication, Trade Finance, implementing large
Change Mgmt prog.
Estimated Capital Need & Deployment (in medium-term)

Capital Commitment & Infusion Deployment Plan

Seeding Total Capital: INR 28 crores

Sep 2019 Tranche-I : INR 3.0 crores
AIF creation – SEBI approval & Structure creation
Organization Building
Initial Contribution to the AIF Fund
Dec Tranche-II : INR 25 crores
2019
Early Stage Book Building

June 2020 Incremental Capital: INR 100 crores

Book Building
Early Stage
Dec 2020 Incremental Capital: INR 250 crores
Book Building
Funding directly into AIF fund SPV
Distress Asset Scenario in India

Current Scenario Opportunities Stratagies

 Large part of SME & Mid-Market
Assets are under distress
 Institutions and Promoters looking
for resolution mechanism, both
within and outside the ambit of
Insolvency & Bankruptcy Act
 Causes of distress are often high
leverage, poor management and
succession planning
 Mid-market sector is undergoing
major churning due to events like
demonetisation and regulatory
changes like GST
 Huge pool of productive assets  Mindstone Group, with its market
available in the mid-market presence, strategic segmental
segment which can be picked up at positioning, robust team is very well
substantial discount placed to create a long term
 Larger funds and ARCs lack the business model through AIF
ground level understanding to pick structure. The strategy include
mid-market assets. They are mostly following critical areas:
focussed on large cap space  Well defined investment policy
 With our presence and ground level  Strategic focus on Sectors
understanding & experience in  Robust Asset Selection
dealing with small and mid-market  Portfolio risk diversification with
asset we are well positioned to take portfolio correlation strategies
advantage of the situation  Clear exit & liquidation strategies
 Target

Industry/ sector/ Product/ Market

Organization Structure