Aurum Rising India AIF
Our view on the fund, the AMC, the strategy, the performance & the investment team.
IME's Review of Aurum Rising India AIF
| Fund Rating | Strategy Rating | Performance Rating |
|---|---|---|
Upgrade | Upgrade | Upgrade |
View on the Fund
We recommend this fund as a well-defined alternative investment option, offering a focused approach to the pre-IPO market while also exploring other high-potential opportunities. Nine Rivers has demonstrated strong pedigree through their private equity-style investing approach in small-cap investing (with very impressive longer-term performance) and has an investment team with past private equity experience, making their investment style well-suited to this fund’s strategy. The main negative of the fund is liquidity - with a long 9 year fund tenure requiring investors to be willing to block capital for an extended period of time.
Strategy
Pre-IPO Focused Strategy
Fund's Strategy View
Aurum Rising India is a closed-ended Category II AIF that primarily targets the pre-IPO market (at least 50%), with diversification into Special Situations and Listed SME companies (up to 25% each). The strategy places a strong emphasis focus in the manufacturing and consumer sectors.
Fund Performance
Performance is highly based on power law, where a handful of investment make up for majority of returns. Network and ability to source deals is a key aspect of unlisted returns.
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Aurum Rising India AIF |
Performance as of: 31-Jan-26
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.
IME's Review of Nine Rivers PMS
| AMC Rating | Pedigree Rating | Team Rating | Philosophy Rating |
|---|---|---|---|
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View on AMC
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's 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.
AMC Team
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.
Investment Strategy
Aurum Rising India Fund is designed to capitalize on India’s economic growth by investing in high-potential, growth-stage companies across pre-IPO, SME, and special situation opportunities. The fund combines rigorous research, sector-agnostic strategies, and exit-oriented planning to deliver favorable risk-adjusted returnsCore Investment Approach
Portfolio Allocation:
- Pre-IPO Companies (At least 50%):
- Invest in unlisted medium to late stage businesses expected to go public within 2-3 years.
- Prioritize sectors with large addressable markets and competitive advantages.
- Cheque Size: 5-25 Cr
- Special Situations (up to 25%):
- Target unique opportunities offering high-value realization.
- Seeking special situations that offer a disproportionate value unlocking
- Cheque Size: 10-30 Cr
- Listed SME Opportunities (up to 25%):
- Early investment in companies listed on SME platforms to capture growth potential.
- Cheque Size: 5-15 Cr
Sector-Agnostic Approach:
- Emphasis on manufacturing and consumption-driven sectors.
- Focus on companies with:
- Innovative business models.
- Scalability.
- Proven execution capabilities.
Investment Filters and Governance:
- Qualitative: Evaluate management integrity, governance standards, and operational efficiency.
- Quantitative: Use detailed financial modeling to assess:
- Earnings growth.
- Cash flow visibility.
- Return ratios.
- Preference for businesses with low debt and strong competitive moats.
Exit-Oriented Strategy:
- Identify potential exit options at the investment stage (e.g., IPOs or strategic sales).
- Align holding periods with growth milestones to maximize returns.
Key Differentiators
- Focused on underserved growth-stage companies not typically targeted by private equity funds.
- Custom investment sizes (₹5-30 crore) tailored to mid-sized enterprises.
- Rigorous research and a well-established network enable early identification of niche opportunities.
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.
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