Harnessing cross–border Transactional
Businesses
Lotus
Capital:An
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Introduction
Lotus Capital:
Introduction
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Lotus Capital: An Overview
 Boutique investment & advisory firm that seeks to leverage India’s competitiveness &
market potential incl. cross-border growth opportunities
 Aims to service clients through the following broad practice areas:
– Investment Banking
– Asset Management
– India Entry Advisory
– Outsourcing Advisory Services
 Entrepreneurial team with cross–border, cross–cultural operational & investment experience
– Team includes private equity specialists, investment bankers & senior corporate executives with decades of
work experience gained with Fortune 500 firms, investment banks, across USA, UK, India & Middle East
– Successful track record in M&A, capital raise, financial restructuring, private equity & structured investments,
IPOs & secondary offerings, buy-outs & strategic sale, India entry, JVs, sales & business development
– Expertise includes: short-listing potential targets/acquirers, assisting in due diligence, valuation, pitch
preparation, negotiation, evaluating/issuing term sheets, deal structuring & support for transaction closure
 Value Proposition
– Strong local network with corporate leaders, institutions, investment community & governmental agencies
– Hands-on “Feet–On–The Street” approach to align with clients to succeed in complex market environments
– India-centric, cross-border experience enables us to be a value-add partner to overseas cos./investors by
assisting in creating appropriate & tax efficient structures for M&A transactions & capital raise initiatives
– Ability to advise foreign firms in charting a successful India-centric strategy, for accelerated growth & risk
mitigation
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Our Service Offerings: An Overview
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•
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Capital Raise
Buy/Sell Side M&A mandates
Spin Offs/Carve Outs
Valuation/Restructuring
Advisory services to Indian
firms for overseas expansion
• Originate/Conceptualize
alternative investment products
• Structuring, Fund Raising,
Investment, Monitoring & Exit
Support
Investment
Banking
Asset
Management
Outsourcing
Advisory
India Entry
Strategy
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•
•
•
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• Appropriate Vendor Partner
• Structure Engagement
Model
• Client–Vendor Relationship
Management
• On-going Support
Lotus
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Lotus Capital:
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Market study
Partner selection
Negotiations & Structuring
Implementation
Post–entry support
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Cross-Border Transactions on the Rise
Technology Sector
Cross-border Transactions
FY11: 93% was
cross-border
84% of total
deal value
$ 40
$ 35
US$ Billion
$ 30
$ 25
$ 20
$ 15
$ 10
$5
$FY07
FY08
Outbound
FY09
Inbound
FY10
FY11
Domestic
9 out of top 10 deals announced in FY11 were cross-border
& USA accounted for 43% of mid-market transactions
Key Areas: internet services, BPO, niche solutions/
applications, IT Consulting & Services, infrastructure
mgmt. services, engineering services etc.
India being a growth play, outlook on M&A/PE transactions for mid-market is considered to be bullish for the
next several years & with foreign firms being able to extract significant synergies from their M&A,
There are myriad opportunities to collectively serve USA & Indian entities in the mid-market
segment for cross–border M&A & capital raise transactions
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Potential Opportunities for Transactions
IT/IT Services
 Indian IT industry is estd. to grow to $ 285
bn by 2020 from $ 12.8bn in 2004
 M&A in IT was $ 2bn in FY11, set to
increase significantly
Media & Entertainment
 Market estd. to be $ 28bn by 2015
 Digital & internet technologies increase to
influence leading to a sea change in
consumer behaviour across all segments
eCommerce
 Online retail market to be S 1.43bn estd. by
2015, 250% growth rate
 80mn internet users, 7% penetration; estd. to
be 376mn by 2015
 No. of transacting users estd. to 38mn by 2015
(from 8-10mn currently)
BFSI
 Total bank advances estd. at $ 8.2 trillion by
2020, of which infrastructure & mortgage is
to account for 25%
 Investment banking to increase 10x
 Banking, Financial Services, Insurance,
Corporate Finance Advisory
Lotus
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Healthcare
 Estd. To grow to $ 280bn by 2020
 Underserved market, burgeoning population,
increased disposable income & rise of lifestyle
diseases are propelling growth
Pharmaceuticals
 India is world's 3rd largest market by volume
 Estd. to grow to $ 55-70bn by 2020
 5 new opportunities will capture 45% of the
market by 2020
 Patented products, consumer healthcare,
biologics, vaccines & public health
Clean Technology
 Market estd. to touch $ 135bn by 2020
 Energy efficiency market estd to treble to more
than US 77bn by 2020
 Estd. to support 10.5mn green jobs in 10 years as
investments in energy efficiency & renewable
energy technologies soar
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Investment Banking Services
• Private Equity/Venture
Capital investments
• PIPES/ Overseas listing
• Debt Syndication
• Mezzanine Funding
• Acquisition Financing
Capital
Raising
M&A
Advisory
Advisory
Services
Financial
Advisory
• Valuation: Evaluate company &
industry dynamics;
• Financial modeling; Valuation
Analysis & Report
• Restructuring: Analyze existing
corporate structure; Advise on
best fit solution & assist in
implementing
• To Indian firms for overseas
expansion:
• Joint Ventures, Strategic
Alliances/Market
exploration/Business
facilitation
Lotus
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Introduction
Lotus Capital:
Introduction
• Buy-side & sell-side mandates
• Spin-offs / carve-outs
• Joint venture/Alliances
• Services: pitch preparation,
financial modeling &
valuation, due diligence,
process mgmt., structuring,
negotiating transaction &
closing
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Asset Management Services
We specialize in creating sector–focussed alternative investment
products for investors who seek to participate in India’s growth story
 Conceptualize & originate alternate investment products aligned with our clients’ objectives
 Structure investment vehicle to balance risk-reward, prepare placement documents, & conduct
road–shows, negotiate placement terms & assist in transaction closure
 Identify investment opportunities that can benefit from investment & management value add role in
increasing operating efficiencies & margin expansion, leading to enhanced shareholder value
 Render investment management advise from deal origination, negotiations, structuring, investment
entry, monitoring and exit
 Align interest, as a manger, with investment performance over a period of time
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experience in advising & executing
complex cross-border transactions to
generate value for stakeholders
 Hands-on knowledge & understanding
of raising cross-border, sector-specific/
theme-based private & listed funds
 Substantial equity investment in cos.
with “India-centric” thesis, from deal
identification to investment exit
 Board memberships: assisting portfolio
cos. to chart strategic growth initiatives
 Evaluated 200+ transactions, incl. in
Business Services & Hospitality sectors
 Led several India-focused direct equity
investments, with 35%+ avg. IRR over
3-5 years avg. holding period
with global majors: Cray,
Digital GlobalSoft, Schiller
AG, Tektronix etc.
 Top management & board
positions in public & private
cos.
 Consultative approach with
clients, having assisted highgrowth entities in organic/
inorganic growth strategy
 Build sales & marketing
strategy & led cos. which
achieved business excellence
 Advised cos. across sectors
such as Infrastructure,
Business Services,
Technology, eCommerce etc.
Deeply entrenched network: ME, India, USA
 Successfully led JVs in India
 Extensive domestic & international
Operating & Consulting Expertise
Expertise in Public & Private equity, I-banking
Unique Positioning & Value Proposition

Well networked in India
with corporate entities at
decision making levels
for generating strong
deal flow & efficient
turnaround

Access to governmental
agencies/institutions
policy advise/liasoning if
reqd.

“Feet on the Street”
approach, led by a very
senior team with unique
combination of
complementary skills
Unique positioning with a partnership approach with clients
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Our Team Includes
LM Singh
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Over 20 years cross-cultural global work experience covering private equity investments, buy outs, turnaround
situations and audit & control across Middle East, North America, Europe & India

Significant investment, operational & transactional experience as well as deeply entrenched network with large
as well mid-market entities across sectors for access to quality deal flow

Led several India-focused direct equity investments, with average IRR exceeding 35% over avg. holding period
of 3–5 years (invested $ 45mn with exit values in excess of $ 110mn)

Co-sponsored $ 40.4mn structured investment vehicle, TransTech Services Partners Inc., to make control
investments in Business Services cos. & improve operating efficiencies by leveraging India’s competitiveness

Former President & Country Head, TAIB Securities, New York & London, affiliates of TAIB Bank, Bahrain
 Boutique firm, with $ 1bn+ AUM, part of Dubai Financial Group; operating in India, Persian Gulf, Europe & USA

Key team member involved in structuring, marketing & managing The Everest Fund at TAIB Bank (openended fund that invested in Indian listed securities; Micropal ranked it as Best Performing in its Category)

Set up a cross-border investment bank & advisory firm based in India, which was acquired by a large European
bank, with a total asset base of over €58bn

Graduate B.Com (Hons), SRCC, Delhi University); Chartered Accountant (FCA), IIA (USA), CISA (USA)
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Our Team Includes
Suresh Rajpal
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Over 35 years of senior executive global experience in U.S., Asia Pacific and India

Founder/President of HP India – strategically led HP into Asia/India markets
 Generated revenue of $ 1.6bn+ (1984-88) as Director of Sales, Marketing & Support Hewlett-Packard (HP) Asia

Led HP India since inception (1989-99) as Country head, President & CEO of HP India
 Was responsible for positioning HP as a leading player in India and grew revenues to $ 200mn+
 Under him, Co. achieved the highest award for business excellence in India, the CII EXIM Award for Business
Excellence (equivalent to the Deming prize in Japan & the Malcolm Baldrige in the US)

Recipient of Ernst & Young’s Entrepreneur of the Year Award for India in 2000 (for companies started in
previous 3 years)

Recipient of US ambassador’s award for extraordinary service to American businesses in India as the
President of American Business Council

Electrical Engineer, IIT–BHU, India; MBA, York University, Toronto, Canada
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Our Team Includes
Hemant Sonawala
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One of India’s IT industry’s pioneers; 40 years experience incubating cos., & leading JVs with multi-nationals:
 Digital Equipment Corporation, USA; Tektronix, Inc., USA; Schiller AG, Switzerland, among others

Vice-Chairman Digital GlobalSoft – a leading software services company

Awarded the Lifetime Achievement awards by Computer Society of India & Dataquest

Extensive corporate governance experience as Board member of public companies

Founder, Patron Member, Past President & member of various industry bodies incl.: Indo-American Chamber
of Commerce, Computer Society of India, IEEE-USA, Indian Science Congress Association etc.

Honorary Citizen of the State of Washington conferred by Secretary of State Sam Reed

M.S.E.E. from University of Washington, Seattle, Washington, USA
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Our Team Includes
Amitabh Singh

Extensive Expereince of around 18 years in the IT/Telecom Industry across Geoghraphies.
 Specialisation and expertise in the domains of Strategy,Deal –Making ,Pricing ,Alliiance management,Business
Development etc

Have dealt with various group holdings in the Telecom sector at the Board/CXO levels in the EMEA/APAC
regions.

Held senior level positions with Companies like NSN/Nokia/Huawei/Reliance /Airtel etc.

Generated revenues close to 1 billion USD during senior sales roles with Huawei and NSN.

Have successfully initiated and managed partnerships and alliances on behalf of NSN/Huawei with
Companies like IBM/Gartner/Accenture/Tech Mahendra/Infosys etc

A Economics graduate along with a MBA in International business.
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Representative Transactional Experience
Acquisition of 20% stake by
2007
Includes prior expeince of the team
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Representative Investment Experience
Asset Management
Product
Consolidation in the
Business Services
sector vide a listed
entity
The Everest Fund
(Listed Securities Fund)
Rationale, Role played and Outcome
 Raised $ 40.40mn in equity capital, with option for additional $ 25mn, from institutional
investors in USA/Europe through a listed structure; to execute control investments in
operating IT/BPO entities, which could benefit from India’s cost arbitrage & market access
 Aim: leverage the team’s value-add operating & investment experience in assisting IT/BPO
firms, for productivity improvement & margin expansion initiatives, by leveraging India’s
delivery capability, & also for seeking consolidation opportunities through the public entity.
 Our role included: conceptualize investment thesis, sponsor, assimilate a marquee team &
advisors, conduct road shows, fund raising & managing the listed entity.
 The team leveraged its strong institutional/corporate network for access to quality deal flow;
evaluated 200+ potential targets incl. conducting due diligence, valuations, negotiation &
structuring investments
 Finalized acquisition target & led it through regulatory clearances; however, post 2008 global
meltdown, which led to unrealistic investor’s risk-return expectations, the sponsors decided
not to invest any further funds & liquidated the structure.
 Fund was the 1st FII investor in India for listed securities from the Middle East
 Key team member involved in structuring, marketing & management of the open-ended
fund launched by TAIB Bank (part of the Dubai Financial Group)
 Primarily invested in listed, high-growth Indian cos., with a specific focus on the Services
sector
 The Fund was ranked by Micropal as the Best Performing in its Category
Includes prior experience of the team
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Representative Advisory Experience
Corporate Advisory,
India Entry Strategy
2007
Includes prior experience of the team
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Representative Advisory Experience
Corporate Advisory,
India Entry Strategy
2007
Includes prior experience of the team
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Level 4, Rectangle 1,
Commercial Complex, D–4 Saket
New Delhi–110017
www.lotuscapital.in
Thank You
LM Singh
+91 98113 48489 (India Cell)
lmsingh@usa.net
lmsingh@lotuscapital.in
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