Nine Rivers PMS

PMS Rating

IME PMS Rating

5 of 5 stars

Highly recommended for aggressive investors : Nine Rivers Capital PMS is a credible niche PMS provider with a focus on small-cap investing with a private equity approach. With a strong investments team, a clearly articulated & differentiated investment philosophy (Private Equity approach to listed small-cap investing) and a focussed approach to mid-and-small cap investing it is a recommended option for those seeking investment portfolios focused on smaller companies.

The PMS/AIF AMC Rating is derived on the basis of our analysis on 5 key qualitative parameters that we use to analyse the quality of a PMS/AIF Provider. These include an assessment of the size of the AMC, the pedigree of the AMC, the pedigree of the team, the value of the investment philosophy & the level of differentiation. These insights of our central research team are documented in the IME RMS, and can be accessed during a consultation call with an IME PMS specialist.

PMS Background

Discretionary AUM (475cr) | Promoter Category ()

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.

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.

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.

Inv Team

Investment Team

Sandeep Daga | 5-star rated FM

Founder & CIO | 25 yrs Experience | 11 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 and Public Markets, and Corporate Finance. He is known for his focus on small and mid-caps.

Vivek Ganguly | 5-star rated FM

Portfolio Manager | 25 yrs Experience | 11 yrs at current firm

Past Experience: Principal (Global Environment Fund India Advisors Pvt Ltd), Fund Manager (Quantum AMC), Portfolio Manager (Transpek Finance Ltd & Kisan Ratilal Choksey Pvt Ltd)

Vivek Ganguly comes with over 20 years of experience in Indian public and private equity markets, with experience as a Principal at Global Environmental Fund and Fund Manager at Quantum AMC.

PMS/AIF Schemes

PMS & Listed Equity AIF Schemes

Returns as of 28-Feb-24.

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Note: PMS AMC & Scheme Reviews and Ratings are based on IME Capital’s Proprietary Review and Rating Methodology (read more here: AMC Rating & Scheme Ratings). These reflect the unbiased views of our central research team, based on our assessment of the investment value of these PMS/AIF strategies for our investors. We follow a highly stringent rating-criteria, where approximately 50% of PMS AMC’s & strategies would be rated 2-star or below (this is not meant to indicate that these funds are not investment-worthy, but that they do not currently fulfill the requirements we focus on for recommending funds to our investors — based on our internal views on the merit of the AMC/strategy relative to peers). Reviews & Ratings are primarily based on research of publicly available information (SEBI disclosures, PMS websites, PMS-aggregation platforms, webinar recording, media interviews etc.) and no explicit consent is required from AMCs for the same. While we endeavour to do further due-diligence via direct interactions with the investment teams of AMCs, this is typically restricted to AMC’s that meet our foundational fund selection criteria (reviews on lower-rated AMCs are often based solely on publicly available information). The views reflected in our Reviews & Ratings, are our independent views and may not be shared by the AMC’s and the investment teams. Please read detailed disclaimer for more.