Have 5-6 portfolio firms planning IPOs

ChrysCapital, one of the largest India-focused investment firms with over $6 billion in assets under management (AUM), is exploring investments in areas such as enterprise tech, financial services, pharma, health care, consumer, manufacturing, and new economy sectors, said SANJAY KUKREJA, partner and chief investment officer (CIO). In a video interview with Peerzada Abrar, Kukreja also said the environment for companies going public is facing some headwinds but better businesses will not be deterred. Edited excerpts:

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How has the investment strategy changed at ChrysCapital over the years?

The fundamentals remain consistent. A good investment strategy is one that retains its essence through multiple cycles. The core of our investment strategy is building deep expertise in a few sectors with a combination of investing and operating skill sets. At a portfolio level, we would perhaps have the highest return on equity (RoE) or return on capital employed (ROCE) on a look-through basis for our companies. I believe that has been at the heart of delivering consistent returns through cycles.

The investment strategy has evolved more towards deals where we have a controlling stake over time. From under 10 per cent of our portfolio a decade ago, we now have more than 50 per cent control or joint control in our companies. We transitioned from value investing to paying fair prices for high-quality businesses around 2010-2012. We are comfortable investing in businesses that don't really need capital. We focus on quality management, high return on capital businesses that are scalable, with reasonable pricing, and adding value through our expertise. Over time, we have also done more deals in the US-India corridor.