Nine Rivers PMS
PMSIME's View on Nine Rivers PMS
AMC View
Nine Rivers Capital PMS is a reputable PMS provider specializing in small-cap investing with a private equity approach. They have a strong investments team and a focused approach to mid-and-small cap investing, making them a recommended choice for those interested in smaller companies.
AMC Pedigree
Founded in 2012, Nine River's Capital is a niche PMS investing with a PE style in listed equities. The fund has a strong track record of outperformance and specializes in small-cap investments.
Team Pedigree
Nine Rivers Capital has a strong investment team led by founder Sandeep, who has over 20 years of PE investing experience. The firm has recently faced some churn issues, with one of their long-term senior members of their investments team (Vivek Ganguly) having left Nine Rivers in 2024. While this is a negative, the founder Sandeep Daga is ultimately the driving force of investment decisions (along with a seasoned research analyst team) and we believe that this churn should not have an impact on the investment philosophy or longer-term fund performance.
Investment Philosophy
Nine Rivers Capital focuses on investing in small & mid-cap companies using a private equity approach (extensive research, long-term buy & hold approach). They conduct thorough research, including scuttlebutt research, during a 4-8 week process to select stocks. Their stock selection methodologies and risk-control frameworks are well-defined.
AMC Background
Nine Rivers Capital PMS was founded in 2014 by Sandeep Daga (an experienced private equity professional), with an aim of bringing ‘private-equity’ style investing to listed small & mid cap investing in India. AMC Backed by Investment Team with Strong PE Credential Founded in 2014, Nine River's Capital is a niche PMS that aims to invest with a PE style in listed equities. While it is backed by a strong promoter with strong PE credentials, the firm has not yet scaled in-line with its potential.Investment Philosophy
Nine Rivers Capital PMS’s core belief is that you can only generate superior long-term returns in small & mid caps by applying the same rigor and discipline as in private equity investing. The aim is to exploit the judgmental biases and behavioural weaknesses of market participants, to identify attractive investment opportunities. Nine Rivers looks for the following attributes in possible investee companies – dominance in a niche vertical, growth tailwinds, a robust balance sheet, strong ROEs and a lack of institutional research coverage. Private-equity Approach to Small-cap Investing Nine Rivers Capital has a clearly articulated investment philosophy focused on investing in small & mid-cap companies with a private equity approach. The stock selection methodologies, along with their risk-control frameworks are strongly defined.Investment Process
- Ideation and Discovery: Spotting value-creation drivers through macro-tailwinds (policy, regulatory, consumer-behaviour, and technology among others)
- Fundamental Evaluation: Strong 15% earnings growth with free cash flows, low leverage, good governance and sustainable 15%+ ROCEs
- Conservative Entry Point: Buy growth at reasonable valuation. Average entry PE below 20x.
- Risk Management: Constant monitoring (of positions, performance, governance and macro), pro-active exits (based on valuation guardrails, thesis deviation, macro events, and superior alternatives), and selective forensic diligence where indicated.
Investment team
Sandeep Daga | 5-star rated FM
Founder & CIO | 27 yrs Experience | 13 yrs at current firm
Past Experience: Director (Frontline Strategy), Head - B2B Investments (ICICI Venture)
Sandeep Daga has over 20 years of experience in Private Equity, Public Markets, and Corporate Finance. Having worked at one of India's leading Private Equity Funds (ICICI Ventures), Sandeep brings his private equity experience to investing in the listed space - by adopting a private equity style approach to listed small-cap investing. He is known for his focus on small and mid-caps.
