India Business

Excellence
Fund IV
Motilal Oswal Private Equity (MOPE)
JULY 2021
SNAPSHOT

MOPE – A leading India-focused private equity fund manager

Quick facts Preferred sectors Industry recognition

Provide growth capital to mid-market companies in India MOPE awarded
Financial
“Growth Capital Investor of the Decade”
Services The Venture Intelligence's
15 years / 3 growth capital funds
APEX PE VC Awards

INR 8,400 Cr AUM across private equity & real estate funds
Consumer
33 investments since inception with gross IRR of 26.6%

12 complete exits with ~5x MOIC and gross IRR of 27.5%

Life Sciences
Backed by India’s most respected equity investment house
with ~INR 75,000 Cr AUM

Private equity business > 20% of the group net worth

Niche
15%+ of the funds contributed by group and team
manufacturing
Performance as on 31st March 2021 in INR terms based on third party valuation
www.motilaloswalpe.com
2
TEAM

Sector focused team approach creates a strategic edge

Core investment team with deep sector expertise Ably supported by a pool of Operating partners in
investment professionals focused sectors with 120+
Founders
years of experience
34 15 23 15
Citibank, 20th Century Fin Corp and
Nikhil Wadhwa Kanad Chaudhari
Indian Direct Equity Advisors

Sanjaya Kulkarni, FINANCIAL SERVICES

Raamdeo Agrawal Vishal Tulsyan and IC MEMBER
CHAIRMAN, MOFSL CEO and MD

Sector Leads Ayan Deb Utkarsh Patel

E-Merc, Hikal and Actavis Pharma
21 14 17 8
G Shankar, LIFE SCIENCES
Ex- Emami & Essel Mining Ex - ITC and Asian
Paints
Vineet Shah Jay Mehta
KCP, GSK Consumers, Becton
Prakash Bagla Vijay Dhanuka
Dickinson Consumer, GE, Heinz
NICHE MANUFACTURING CONSUMER
India and CavinKare

14 5 16 2 N Thiruambalam, CONSUMER

Ex- HDFC, KPMG, Radhika Kedia Adhiraj Singh

Ex - KPMG Kotak IB

Rohit Mantri Vinit Mehta  Exclusive with MOPE

LIFE SCIENCES FINANCIAL SERVICES
Total Experience
xx xx Years with MOPE
 Sector-wise alignment with
Shubhankar Sharma
close involvement at all
Ably supported by an experienced Fund Operations and Fund Raising/ Investor Relations team stages from deal evaluation
till exit
One of the largest PE investment teams in India, with a differentiated strategy in deal sourcing & execution
www.motilaloswalpe.com 3
STRATEGY

Our investment philosophy designed for success

“Quality Growth Longevity Price (QGLP)” investment framework – Bedrock of MOPE’s Success

Anchors of our Strategy

1 2 3 4 5 6

First First Market Profitability Proprietary Board

Institutional Generation Leadership Track Record Deal Seat(s)
Investor Entrepreneur Sourcing
22 23 21 30 24 29
(out of 33 (out of 32 (out of 32 (out of 33 (out of 33 (out of 33
investments) companies) companies) investments) investments) investments)

Maximum Better
Desire for Brand & Superior Reasonable
Upside Governance &
Success Scale Benefits Business Model Entry Valuation
Potential Control

www.motilaloswalpe.com 4
QUALITY AND LONGEVITY

Ability to pick winners beyond our investment horizon

Aggregate Value of
Select Examples
Fund I Companies

Financial Services Consumer

885
AU Financiers Mrs. Bector’s Foods
One of the fastest-growing small Leading player in processed
finance banks in India food business

Valuation (INR Bn)

13.1x 199.1x 4.4x 9.1x
Exit MOIC Current MOIC Exit MOIC Current MOIC

Niche manufacturing
223
Dixon Technologies Minda Industries 40
Largest domestic electronic Market leader in electronic auto
manufacturing services player components

16.2x 151.8x 4.9x 37.6x

Exit MOIC Current MOIC Exit MOIC Current MOIC MOPE’s Entry MOPE’s Exit Current

Exit MOIC in INR terms; Current MOIC for listed companies computed basis market cap as of March 31, 2021 and private companies basis third party valuation methodology as of March 31, 2021

www.motilaloswalpe.com 5
TRACK RECORD

Proven performance in high-quality investing

Fund I Fund II Fund III

~INR 550 Cr ~INR 1,000 Cr ~INR 2,300 Cr
Vintage 2007 2013 2018

Investments 13 11 9

Exits 11 complete; 1 partial 1 complete 90% (committed)

Portfolio Gross IRR 27.1% 16.9% 47.4%

Portfolio MOIC 6.3x 2.3x 2.0x

Select
Portfolio Companies

Note:
(1) Performance as on March 31, 2021 based on 3rd party valuation, Gross IRR and MOIC is at portfolio level (i.e. for both domestic and offshore fund)
(2) MOIC is Multiple on Invested Capital
www.motilaloswalpe.com 6
STRATEGY

IBEF IV: Investment strategy in line with the past

• Size of mid-market companies have evolved over the last decade
• Companies demonstrating strong, long-term sustainable growth potential
• Fresh infusion of capital or secondary opportunities
• Offer flexibility on all exit options

FOCUS ON MID-
MARKET
• Consumer: Consumer products, Food, Retail chains, Consumer Tech
PREFERRED • Financial services: Retail lending, Fintech, Wealth Management, Insurance
SECTORS • Life sciences: Formulations, Contract research & manufacturing services, Medical devices
• Niche manufacturing: Auto components, Electronics / Hardware, Building materials

IBEF IV

FIRST GEN Preference for first generation entrepreneur as:

ENTREPRENEUR • Significant portion of wealth tied to the business
• Strong alignment with investors’ interests
• Passion for business and hunger for growth
LEADERSHIP • Open to ideas and strategic inputs
POSITION

• Significant market share in a product and/or certain geographies coupled with sector
tailwinds
• Such companies typically possess well-established business models
• Better placed to withstand market cycles
www.motilaloswalpe.com 7
TERMS

IBEF IV: Summary of Key Terms

Particulars Details

Target Fund Size (including green shoe) ~INR 4,000 Cr (US$ 500 – 550 million)
Investment Manager MOPE Investment Advisors Private Limited
Providing growth capital to mid-market Indian companies in our preferred sectors – 1) Consumer, 2) Financial Services, 3) Life
Fund Focus / Strategy
Sciences and 4) Niche Manufacturing
Target number of Investments 10 – 15 investments
Hurdle Rate 10% p.a. pre-tax (INR) / 8% p.a. pre-tax (US$)
• INR 5 Cr (domestic)
Minimum Capital Commitment
• US$ 1 million (offshore)
Sponsor & Team Commitment 15%+ of the target fund
Tenure 11 years from the date of the final closing
Commitment Period 5 years from final closing, extendable by up to 12 months
• 2% of commitment amount p.a. during commitment period
Management Fees1
• 2% of invested amount p.a. thereafter
Additional Return 20% with catch-up
Legal Structure AIF Category II
Auditor S R Batliboi (affiliate of Ernst & Young)
Legal Advisor Khaitan & Co.
One time Distribution and Servicing cost2 2% (plus GST) of the capital commitment
1Of
the 2% management fee during commitment period, 1.5% shall be paid during commitment period while 0.5% will accrue and be paid out of subsequent cash flows of the Fund
2Amountpaid towards one time distribution and servicing cost shall be deducted from the Capital Commitment
www.motilaloswalpe.com 8
Contact us
Vishal Tulsyan Chandrakant Soni
CEO and MANAGING DIRECTOR HEAD – FUND RAISING and INVESTOR
RELATIONS
DID: (+91) 22 7198 5504
Mobile: (+91) 98204 47408 DID: (+91) 22 7193 4302
E-mail: [email protected] Mobile: (+91) 98339 53543
E-mail: [email protected]

Vijay Dhanuka Vinit Mehta

PRINCIPAL PRINCIPAL
DID: (+91) 22 7190 6682 DID: (+91) 22 5036 2754
Mobile: (+91) 98673 42555 Mobile: (+91) 98672 04409
E-mail: [email protected] E-mail: [email protected]

Disclaimer
This presentation has been prepared exclusively for information purposes only. The information contained herein is proprietary and is given
herein for information purposes only. The information and statistical data herein have been extracted from publicly available information and/
or also obtained from sources the parties involved in the preparation of this presentation believe to be reliable but in no way are warranted by
them as to accuracy or completeness. The parties involved in the preparation of this presentation accept no responsibility for any losses
resulting from the use or transmission of the data or views represented in this presentation. The recipient is provided the information contained
herein on a confidential basis which should not be disclosed to third parties or duplicated or used for any purpose.
The readers should bear in mind that past performance is not necessarily indicative of future results, and there can be no assurance that Fund
I and Fund II will achieve comparable results. Except where otherwise indicated herein, the information provided herein is based on matters
that exist as of the date of preparation and not as of any future date, and will not be updated or otherwise revised to reflect information that
subsequently becomes available or circumstances existing or changes occurring after the date hereof.
The parties involved in the preparation of this presentation shall not be liable for the relevance, accuracy or completeness of the information
contained herein, and disclaim any and all liability as to the information set forth herein or omissions here from, including, without limitation,
any express or implied representation or warranty with respect to such information.

www.motilaloswalpe.com 9