We are excited to welcome Nisus Finance India!
Firm Overview
– Nisus Finance Investment Managers LLP (Nisus Finance or NiFCO) is India’s foremost focused alternatives bond manager with a track record of USD 1.3 billion in India alternatives as a team. In 2014 Nisus Finance brought together India’s top professionals and industry veterans in with over 100 man years of experience, to create the first successful independent alternatives manager. The members have worked with each other for several years.
– Nisus Finance is professionally owned and operated with high skin in the game by the managers.
– Nisus Finance manages a USD 30 million senior secured bond fund regulated by the Securities and Exchange Board of India (SEBI), the SEC equivalent in India of which USD 12 million are deployed and another USD 18 million is under deployment.
– The fund’s investors include Indian families and institutions that have profited in each of the team’s past funds. NiFCO as a firm has gained enviable reputation for discovering unique fixed income opportunities within Indian real estate, generating consistent returns and timely exiting its portfolio. A large 10 member team is responsible for sifting through the complexities of mid income and affordable residential housing projects in the cities of Mumbai, Pune, Bangalore, Chennai, Delhi and Kolkatta to uncover credit worthy last mile fixed income investment opportunities.
– The operations are backed by proactive asset management, period portfolio credit stress testing, applying in house deep functional expertise on credit, structuring, legal, technical, financial and commercial issues pre and post investments, stringent multi layered approval and investment process, quarterly trade and portfolio reporting. The firm has empanelled the top legal, accounting and financial firms to assist it in due diligence and asset management.
Investment Strategy & Opportunity:
– India is one of the fastest growing nations, clocking an annual GDP growth of 7.6%. India has the lowest GDP/mortgage ratio in the world at 5%, hence lowest gearing for development companies. 90% of housing assets are bought through home loans. Receivables in under development projects are hence directly discharged by banks. The delinquency in India’s home loan portfolio is under 0.2%.
– This makes receivables discounting in popular mid income and affordable housing projects the most attractive securitization model in India.
– Nisus Finance’s India Yield Max RE Covered Bonds are secured by such housing projects with strong underlying consumer credit, assets and cash flows, which have high liquidation value. Such bonds carry high level of social, financial, legal, regulatory and business accountability and risk for the borrower and consequently safety for the investors. Indian investors have pumped over USD 2 billion in such bonds.
– Under capitalization of banks and hence revised banking regulations do not permit housing development companies to borrow cheaper credit for non-construction purposes like equity buy out, addition of FAR, regulatory costs and last mile use of capital, which makes private credit attractive.
– These bonds are senior-most in the capital stack, without being pari-passu or subordinated to any capital, have high asset and cash covers of 2x each, tenures of about 24 months and pay monthly/quarterly coupons and capital redemptions. The bonds are not listed, carry no mark to market risk, have fixed yield and NAV over its life and provide lowest withholding tax structure for investors.
– These bonds are of small ticket sizes, may have built in equity kicker on enhanced collateral valuations, built in fire sale option without legal recourse, three to four layered security wrapper, with geographically spread assets and fiduciary control on all cash inflows.
– The portfolio is diversified, each trade being up to USD 7 million, allowing about 7 trades in a USD 50 million fund, avoiding portfolio lumps or drags
– A recent regulatory change has permitted global investors to now participate in such a bonds portfolio.
– The US Feeder Fund will offer a few accredited or qualified Limited Partners participation in the first close of USD 50 million and a subsequent close of USD 100 million.
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Executive Bios
Pranay Vakil
Chairman
Pranay Vakil brings over 40 years of India real estate and advisory experience. He was the founder Chairman of Knight Frank (UK) in India till 2012, the first international property consultant (IPC) to be set up in 1995. He has been awarded the Lifetime Achievement awards by industry bodies and is considered the foremost expert and icon on India real estate. He sits on the board of several large listed companies, RICS (UK) and government bodies. Pranay is a Chartered Account and LLB.
Harshal Shah
Co-Chairman – Advisory Board
Mr. Shah is a Truman Gray Scholar at MIT and MIT Sloan School of Management and an MBA from The Wharton School, University of Pennsylvania. He has over 25 years of experience across finance, technology, strategy and marketing. He was the founder CEO of Reliance Venture Asset Management Ltd. and President of Reliance Capital Ltd. He is also the founder board member of Yatra.com, India’s largest online travel services company. He serves as the Executive Board Member at the MIT Sloan School of Management, Asia Council Board Member of Phillips Academy, Andover and serves on the Board of large listed and private family enterprises.
Amit Goenka
Managing Partner and CEO
Amit Goenka brings nearly 18 years of related experience in advising and managing senior secured asset backed securitization bonds. Prior to founding Nisus Finance, Amit founded Essel Finance in partnership with a USD 7 billion media conglomerate, managing a USD 50 million alternatives bond fund which generated a yield of 18% p.a and was successfully divested. As the Executive Director of Knight Frank (India), he founded the first Real Estate Investment Trust (REIT) modeled fund in India, with an AUM of USD 50 million. Amit has managed a USD 5 billion Islamic Shariah Fund in Kuwait, undertaking several securitization asset backed Sukuks (Islamic Bond) issues in London, Dubai and Kuwait. He has also held senior roles at Ernst & Young, Aditya Birla Group and Godrej in India. Amit is B.Engg.,MBA (Texas A&M, USA), MRICS (UK), CCF (USA)
Bhaskar Baroi
Chief Investment Officer
Bhaskar Baroi brings nearly 20 years of real estate fund management experience. He held senior investment management roles with ICICI Venture Fund, HDFC Ltd, Standard Chartered Bank and Deutsche Bank, on the senior and structured credit side within real estate in India. He has been responsible for investing nearly USD 600 million in alternatives and asset backed credit with a spectacular track record. Bhaskar is B.Engg, MBA (Finance)
Mihir Nerurkar
Chief Relations Officer (CRO),
Mihir Nerurkar brings 16 years of diverse global experience in Real Estate development, fund raising and Management Consulting. He started his career with Deloitte Consulting in New York with a focus on Financial Services Industry. He moved into Indian Real Estate in 2007 as a Board Member at Samira Habitats, where he developed and managed relationships with leading Private Equity Funds that have generated over USD 60 million in investments. Mihir also worked in advisory capacity with Brookfield Asset Management India and Altamount Capital, involving in transactions over USD 400 million. He is a B.Engg and MBA from Syracuse University, USA.
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Website: www.nisusfin.com
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