Zephyr Peacock India invests in and helps build companies which are rapidly growing with sustainable competitive advantage and creating value for the underserved segments of the population
Investment Thesis & Strategy
India has a large number of small and medium sized businesses that are in need of expansion capital to benefit from strong economic fundamentals such as strong GDP growth, growing domestic demand and the improved regulatory environment in India today.
While there are several funds active in the growth capital segment, demand continues to exceed supply with significant barriers to entry. ZP’s typical deal size is below the range of many large India focused private equity firms but above the capacity of many local sources of capital. The ZP Funds target medium sized, established businesses in India which have the potential to become market leaders in one of the fastest growing economies in the world. ZP targets companies providing competitive advantages beyond low cost labor and benefiting from India’s growing domestic demand from an increasing middle class.
An important part of ZP’s strategy is to secure significant rights in shareholder agreements (e.g., budgetary oversight, approval of appointments to key positions, ability to force an exit, etc.) and board representation. ZP actively monitors portfolio companies to help them implement their growth strategies. At least one member of the ZP Investment Team typically will serve on the board of a portfolio company. Post-investment, the Manager expects to work actively with the management of its portfolio companies to enhance financial and organizational structures, business strategies and implement professional governance practices. Divestment is expected via strategic sale or a stock market listing on the Indian stock markets three to five years after investment.