At my firm, we started looking at private investments about 15 months ago. After extensive debate, we decided to test the waters. We were unsure about whether we had any right to win in this space, or whether we would suffer from adverse selections in deal flow and access. The approach to valuation seemed vastly different, and we asked ourselves whether we would have the mental flexibility to understand and commit capital to much younger companies, most of which had never made a profit. The space also seemed to be in the middle of a hype cycle. Were we too late to the party? These were some of the doubts we had as we gingerly entered the space. We made our first investment almost a year ago. We had a great experience with the company, its senior leadership and the access and operational details they were willing to share. It gave us the confidence to look at other transactions in the private world. Over the past year, we have seen multiple transactions, across sectors and made three more investments. We have restricted ourselves to late-stage investments.
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First Published: Mon, December 06 2021. 23:14 IST