Unifi BCAD AIF

Investment Strategy

Unifi Capital’s Business Consolidations After Disruptions (BCAD)AIF  invests in leaders in business segments that have numerous fragmented players. These businesses are well placed to leverage the disruptions to gain market share and create value for their investors. The BCAD fund has been structured to benefit from the imminent migration of market share from unorganized segments to organized players on the back of disruptions caused by demographics, regulatory changes, consumer behavior, urbanization, and technology. 

Strong Thematic Strategy Unifi's BCAD AIF aims to benefit from the ongoing consolidation and formalisation of many fragmented industries. Multiple drivers such as regulatory (GST, IBC Process, RERA), technology and consumer trends (shift towards branded players) continue to provide strong visibility of the same, benefitting strong companies. × Dismiss this alert.

Core Investment Approach

Identifying Structural Shifts:

• Formalization of the economy driven by GST, demonetization, and digital adoption.
• Increased consumer preference for branded, organized players across various sectors.
• Financialization of savings shifting household wealth from physical to financial assets.

Bottom-Up Stock Selection:

• Companies with consistent volume growth, operating leverage, and capital efficiency.
• Focus on market share consolidation, premiumization, and cost leadership.
• Strong governance standards – eliminating firms with poor capital allocation history.

High-Growth, Buy-and-Hold Strategy:

• Targets long-term wealth creation while maintaining flexibility to reallocate capital.
• Invests at reasonable valuations, with a long runway for growth.

Sector-Agnostic Approach:

• Invests across consumer, financials, IT, healthcare, infrastructure, and manufacturing.
• Key themes: Roti, Kapda, Makaan + Financialization and Services.

PMS Background

Founded in 2001 by Sarath Reddy, Unifi has scaled into one of the top five PMS providers in India, a trajectory made particularly credible by the fact that the platform was built independently without the backing of a large broker, mutual fund house, or star fund manager. Unifi’s growth has been driven by deep client engagement and a differentiated product philosophy centered on identifying time-bound market opportunities and launching focused, often close-ended strategies rather than maintaining perpetual evergreen offerings. This ability to consistently conceptualize, execute, and close niche strategies has allowed Unifi to establish itself as a distinctive PMS franchise despite operating without institutional sponsorship.

PMS Investment Philosophy

Unifi follows a value-driven approach to investing in growth businesses, where valuation discipline is paramount but business growth is viewed as the critical catalyst for re-rating. The firm focuses on niche opportunities that are often constrained by time and deployable capital, leading to strategies that are launched selectively and closed once the underlying opportunity matures. This philosophy has resulted in a thematic investing framework, where each strategy is built around a clearly defined market inefficiency or structural trend rather than broad-based market exposure.

Core Thematic Frameworks

1. Spin-off: Exploits mispricing arising from corporate restructurings and special situations.
2. Deep Value Discount (DVD): Targets businesses trading at a deep discount to intrinsic value due to low liquidity, limited market understanding, smaller market capitalisation, or weak benchmark linkage.
3. HoldCo: Identifies strong underlying operating businesses embedded within holding company structures, where valuation discounts are expected to narrow due to regulatory or governance-driven change.
4. APJ20: Focuses on sectors that are becoming globally competitive and are entering a phase of sustained market expansion, investing in firms well-positioned to benefit from these shifts.
5. Green: Invests in companies enabling carbon reduction or more efficient use of natural resources, across themes such as emission control, energy efficiency, water management, and waste management.
6. Insider Shadow: Invests alongside founders who have made meaningful open-market share purchases, indicating high internal conviction.
7. BCAD: Targets established companies leading market share migration from unorganised to organised segments, benefiting from structural consolidation trends.

Thematic Strategy Orientation

Each Unifi strategy is structured around a specific, well-defined theme spanning special situations, deep value, disruption-led consolidation, sustainability, or insider-led conviction. These strategies typically operate in less crowded segments of the market and are designed to deliver differentiated, risk-adjusted returns while also serving as portfolio diversifiers.

Suitable For

Investors seeking targeted exposure to clearly defined investment themes and time-bound opportunities, rather than broad, benchmark-oriented equity strategies.