Harnessing cross–border Transactional Businesses
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Transcript Harnessing cross–border Transactional Businesses
Harnessing cross–border Transactional
Businesses
Lotus
Capital:An
An
Introduction
Lotus Capital:
Introduction
– Strictly Private & Confidential–
Lotus Capital: An Overview
Boutique investment & advisory firm that seeks to leverage India’s competitiveness &
market potential incl. cross-border growth opportunities
Aims to service clients through the following broad practice areas:
– Investment Banking
– Asset Management
– India Entry Advisory
– Outsourcing Advisory Services
Entrepreneurial team with cross–border, cross–cultural operational & investment experience
– Team includes private equity specialists, investment bankers & senior corporate executives with decades of
work experience gained with Fortune 500 firms, investment banks, across USA, UK, India & Middle East
– Successful track record in M&A, capital raise, financial restructuring, private equity & structured investments,
IPOs & secondary offerings, buy-outs & strategic sale, India entry, JVs, sales & business development
– Expertise includes: short-listing potential targets/acquirers, assisting in due diligence, valuation, pitch
preparation, negotiation, evaluating/issuing term sheets, deal structuring & support for transaction closure
Value Proposition
– Strong local network with corporate leaders, institutions, investment community & governmental agencies
– Hands-on “Feet–On–The Street” approach to align with clients to succeed in complex market environments
– India-centric, cross-border experience enables us to be a value-add partner to overseas cos./investors by
assisting in creating appropriate & tax efficient structures for M&A transactions & capital raise initiatives
– Ability to advise foreign firms in charting a successful India-centric strategy, for accelerated growth & risk
mitigation
Lotus
Capital:An
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Introduction
Lotus Capital:
Introduction
– Strictly Private & Confidential–
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Our Service Offerings: An Overview
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Capital Raise
Buy/Sell Side M&A mandates
Spin Offs/Carve Outs
Valuation/Restructuring
Advisory services to Indian
firms for overseas expansion
• Originate/Conceptualize
alternative investment products
• Structuring, Fund Raising,
Investment, Monitoring & Exit
Support
Investment
Banking
Asset
Management
Outsourcing
Advisory
India Entry
Strategy
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• Appropriate Vendor Partner
• Structure Engagement
Model
• Client–Vendor Relationship
Management
• On-going Support
Lotus
Capital:An
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Introduction
Lotus Capital:
Introduction
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Market study
Partner selection
Negotiations & Structuring
Implementation
Post–entry support
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Cross-Border Transactions on the Rise
Technology Sector
Cross-border Transactions
FY11: 93% was
cross-border
84% of total
deal value
$ 40
$ 35
US$ Billion
$ 30
$ 25
$ 20
$ 15
$ 10
$5
$FY07
FY08
Outbound
FY09
Inbound
FY10
FY11
Domestic
9 out of top 10 deals announced in FY11 were cross-border
& USA accounted for 43% of mid-market transactions
Key Areas: internet services, BPO, niche solutions/
applications, IT Consulting & Services, infrastructure
mgmt. services, engineering services etc.
India being a growth play, outlook on M&A/PE transactions for mid-market is considered to be bullish for the
next several years & with foreign firms being able to extract significant synergies from their M&A,
There are myriad opportunities to collectively serve USA & Indian entities in the mid-market
segment for cross–border M&A & capital raise transactions
Lotus
Capital:An
An
Introduction
Lotus Capital:
Introduction
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Potential Opportunities for Transactions
IT/IT Services
Indian IT industry is estd. to grow to $ 285
bn by 2020 from $ 12.8bn in 2004
M&A in IT was $ 2bn in FY11, set to
increase significantly
Media & Entertainment
Market estd. to be $ 28bn by 2015
Digital & internet technologies increase to
influence leading to a sea change in
consumer behaviour across all segments
eCommerce
Online retail market to be S 1.43bn estd. by
2015, 250% growth rate
80mn internet users, 7% penetration; estd. to
be 376mn by 2015
No. of transacting users estd. to 38mn by 2015
(from 8-10mn currently)
BFSI
Total bank advances estd. at $ 8.2 trillion by
2020, of which infrastructure & mortgage is
to account for 25%
Investment banking to increase 10x
Banking, Financial Services, Insurance,
Corporate Finance Advisory
Lotus
Capital:An
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Introduction
Lotus Capital:
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Healthcare
Estd. To grow to $ 280bn by 2020
Underserved market, burgeoning population,
increased disposable income & rise of lifestyle
diseases are propelling growth
Pharmaceuticals
India is world's 3rd largest market by volume
Estd. to grow to $ 55-70bn by 2020
5 new opportunities will capture 45% of the
market by 2020
Patented products, consumer healthcare,
biologics, vaccines & public health
Clean Technology
Market estd. to touch $ 135bn by 2020
Energy efficiency market estd to treble to more
than US 77bn by 2020
Estd. to support 10.5mn green jobs in 10 years as
investments in energy efficiency & renewable
energy technologies soar
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Investment Banking Services
• Private Equity/Venture
Capital investments
• PIPES/ Overseas listing
• Debt Syndication
• Mezzanine Funding
• Acquisition Financing
Capital
Raising
M&A
Advisory
Advisory
Services
Financial
Advisory
• Valuation: Evaluate company &
industry dynamics;
• Financial modeling; Valuation
Analysis & Report
• Restructuring: Analyze existing
corporate structure; Advise on
best fit solution & assist in
implementing
• To Indian firms for overseas
expansion:
• Joint Ventures, Strategic
Alliances/Market
exploration/Business
facilitation
Lotus
Capital:An
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Introduction
Lotus Capital:
Introduction
• Buy-side & sell-side mandates
• Spin-offs / carve-outs
• Joint venture/Alliances
• Services: pitch preparation,
financial modeling &
valuation, due diligence,
process mgmt., structuring,
negotiating transaction &
closing
– Strictly Private & Confidential–
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Asset Management Services
We specialize in creating sector–focussed alternative investment
products for investors who seek to participate in India’s growth story
Conceptualize & originate alternate investment products aligned with our clients’ objectives
Structure investment vehicle to balance risk-reward, prepare placement documents, & conduct
road–shows, negotiate placement terms & assist in transaction closure
Identify investment opportunities that can benefit from investment & management value add role in
increasing operating efficiencies & margin expansion, leading to enhanced shareholder value
Render investment management advise from deal origination, negotiations, structuring, investment
entry, monitoring and exit
Align interest, as a manger, with investment performance over a period of time
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experience in advising & executing
complex cross-border transactions to
generate value for stakeholders
Hands-on knowledge & understanding
of raising cross-border, sector-specific/
theme-based private & listed funds
Substantial equity investment in cos.
with “India-centric” thesis, from deal
identification to investment exit
Board memberships: assisting portfolio
cos. to chart strategic growth initiatives
Evaluated 200+ transactions, incl. in
Business Services & Hospitality sectors
Led several India-focused direct equity
investments, with 35%+ avg. IRR over
3-5 years avg. holding period
with global majors: Cray,
Digital GlobalSoft, Schiller
AG, Tektronix etc.
Top management & board
positions in public & private
cos.
Consultative approach with
clients, having assisted highgrowth entities in organic/
inorganic growth strategy
Build sales & marketing
strategy & led cos. which
achieved business excellence
Advised cos. across sectors
such as Infrastructure,
Business Services,
Technology, eCommerce etc.
Deeply entrenched network: ME, India, USA
Successfully led JVs in India
Extensive domestic & international
Operating & Consulting Expertise
Expertise in Public & Private equity, I-banking
Unique Positioning & Value Proposition
Well networked in India
with corporate entities at
decision making levels
for generating strong
deal flow & efficient
turnaround
Access to governmental
agencies/institutions
policy advise/liasoning if
reqd.
“Feet on the Street”
approach, led by a very
senior team with unique
combination of
complementary skills
Unique positioning with a partnership approach with clients
Lotus
Capital:An
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Our Team Includes
LM Singh
Over 20 years cross-cultural global work experience covering private equity investments, buy outs, turnaround
situations and audit & control across Middle East, North America, Europe & India
Significant investment, operational & transactional experience as well as deeply entrenched network with large
as well mid-market entities across sectors for access to quality deal flow
Led several India-focused direct equity investments, with average IRR exceeding 35% over avg. holding period
of 3–5 years (invested $ 45mn with exit values in excess of $ 110mn)
Co-sponsored $ 40.4mn structured investment vehicle, TransTech Services Partners Inc., to make control
investments in Business Services cos. & improve operating efficiencies by leveraging India’s competitiveness
Former President & Country Head, TAIB Securities, New York & London, affiliates of TAIB Bank, Bahrain
Boutique firm, with $ 1bn+ AUM, part of Dubai Financial Group; operating in India, Persian Gulf, Europe & USA
Key team member involved in structuring, marketing & managing The Everest Fund at TAIB Bank (openended fund that invested in Indian listed securities; Micropal ranked it as Best Performing in its Category)
Set up a cross-border investment bank & advisory firm based in India, which was acquired by a large European
bank, with a total asset base of over €58bn
Graduate B.Com (Hons), SRCC, Delhi University); Chartered Accountant (FCA), IIA (USA), CISA (USA)
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Capital:An
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Our Team Includes
Suresh Rajpal
Over 35 years of senior executive global experience in U.S., Asia Pacific and India
Founder/President of HP India – strategically led HP into Asia/India markets
Generated revenue of $ 1.6bn+ (1984-88) as Director of Sales, Marketing & Support Hewlett-Packard (HP) Asia
Led HP India since inception (1989-99) as Country head, President & CEO of HP India
Was responsible for positioning HP as a leading player in India and grew revenues to $ 200mn+
Under him, Co. achieved the highest award for business excellence in India, the CII EXIM Award for Business
Excellence (equivalent to the Deming prize in Japan & the Malcolm Baldrige in the US)
Recipient of Ernst & Young’s Entrepreneur of the Year Award for India in 2000 (for companies started in
previous 3 years)
Recipient of US ambassador’s award for extraordinary service to American businesses in India as the
President of American Business Council
Electrical Engineer, IIT–BHU, India; MBA, York University, Toronto, Canada
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Capital:An
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Our Team Includes
Hemant Sonawala
One of India’s IT industry’s pioneers; 40 years experience incubating cos., & leading JVs with multi-nationals:
Digital Equipment Corporation, USA; Tektronix, Inc., USA; Schiller AG, Switzerland, among others
Vice-Chairman Digital GlobalSoft – a leading software services company
Awarded the Lifetime Achievement awards by Computer Society of India & Dataquest
Extensive corporate governance experience as Board member of public companies
Founder, Patron Member, Past President & member of various industry bodies incl.: Indo-American Chamber
of Commerce, Computer Society of India, IEEE-USA, Indian Science Congress Association etc.
Honorary Citizen of the State of Washington conferred by Secretary of State Sam Reed
M.S.E.E. from University of Washington, Seattle, Washington, USA
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Capital:An
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Our Team Includes
Amitabh Singh
Extensive Expereince of around 18 years in the IT/Telecom Industry across Geoghraphies.
Specialisation and expertise in the domains of Strategy,Deal –Making ,Pricing ,Alliiance management,Business
Development etc
Have dealt with various group holdings in the Telecom sector at the Board/CXO levels in the EMEA/APAC
regions.
Held senior level positions with Companies like NSN/Nokia/Huawei/Reliance /Airtel etc.
Generated revenues close to 1 billion USD during senior sales roles with Huawei and NSN.
Have successfully initiated and managed partnerships and alliances on behalf of NSN/Huawei with
Companies like IBM/Gartner/Accenture/Tech Mahendra/Infosys etc
A Economics graduate along with a MBA in International business.
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Capital:An
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Representative Transactional Experience
Acquisition of 20% stake by
2007
Includes prior expeince of the team
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Capital:An
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Representative Investment Experience
Asset Management
Product
Consolidation in the
Business Services
sector vide a listed
entity
The Everest Fund
(Listed Securities Fund)
Rationale, Role played and Outcome
Raised $ 40.40mn in equity capital, with option for additional $ 25mn, from institutional
investors in USA/Europe through a listed structure; to execute control investments in
operating IT/BPO entities, which could benefit from India’s cost arbitrage & market access
Aim: leverage the team’s value-add operating & investment experience in assisting IT/BPO
firms, for productivity improvement & margin expansion initiatives, by leveraging India’s
delivery capability, & also for seeking consolidation opportunities through the public entity.
Our role included: conceptualize investment thesis, sponsor, assimilate a marquee team &
advisors, conduct road shows, fund raising & managing the listed entity.
The team leveraged its strong institutional/corporate network for access to quality deal flow;
evaluated 200+ potential targets incl. conducting due diligence, valuations, negotiation &
structuring investments
Finalized acquisition target & led it through regulatory clearances; however, post 2008 global
meltdown, which led to unrealistic investor’s risk-return expectations, the sponsors decided
not to invest any further funds & liquidated the structure.
Fund was the 1st FII investor in India for listed securities from the Middle East
Key team member involved in structuring, marketing & management of the open-ended
fund launched by TAIB Bank (part of the Dubai Financial Group)
Primarily invested in listed, high-growth Indian cos., with a specific focus on the Services
sector
The Fund was ranked by Micropal as the Best Performing in its Category
Includes prior experience of the team
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Capital:An
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Representative Advisory Experience
Corporate Advisory,
India Entry Strategy
2007
Includes prior experience of the team
Lotus
Capital:An
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Lotus Capital:
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Representative Advisory Experience
Corporate Advisory,
India Entry Strategy
2007
Includes prior experience of the team
Lotus
Capital:An
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Lotus Capital:
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Level 4, Rectangle 1,
Commercial Complex, D–4 Saket
New Delhi–110017
www.lotuscapital.in
Thank You
LM Singh
+91 98113 48489 (India Cell)
[email protected]
[email protected]
Lotus
Capital:An
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Introduction
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