Traditional Fund Management vs The Mt. K Kapital Way
Mt.k
Development Experience
Share in project upside
Risk in project downside
Alignment of Interest
Litigation Risk between Developer and IM
Blind Pool
IC
Fund size
Developer Risk
Traditional Fund
No
No
Yes
Fixed Return. Dispute with developer in case the project is unable to generate requisite cash flow and timelines
Yes, control remains with the developer and security enforcement is a time taking and value eroding process
Yes
Internal
Large, returns impacted by the funds remaining idle for long periods of time
Over a portfolio of developers there will be some that might face liquidity or business risks
Mt. K Kapital
Yes
Yes
Yes
Returns driven by actual project cashflow/return
No, Asset is owned by the fund and developer is a service provider
No, visibility of at least 60% of the pipeline
External with industry expertise
Small, able to efficiently manage and deploy funds
Large reputed development partner who can step in and manage project level challenges
Traditional Fund Management vs. The Mt. K Kapital Way
| Traditional Fund | Mt. K Kapital | |
|---|---|---|
|
Development Experience
|
No |
Yes |
|
Share in project upside |
No |
Yes
|
|
Risk in project downside |
Yes |
Yes |
|
Alignment of Interest |
Fixed Return. Dispute with developer in case the project is unable to generate requisite cash flow and timelines |
Returns driven by actual project cashflow/return |
|
Litigation Risk between Developer and IM |
Yes, control remains with the developer and security enforcement is a time taking and value eroding process |
No, Asset is owned by the fund and the developer is a service provider |
|
Blind Pool |
Yes |
No, visibility of at least 60% of the pipeline |
|
IC |
Internal |
External with industry expertise |
|
Fund size |
Large, returns impacted by the funds remaining idle for long periods of time |
Small, able to efficiently manage and deploy funds |
|
Developer Risk |
Over a portfolio of developers there will be some that might face liquidity or business risks |
Large reputed development partner who can step in and manage project level challenges |
Our Solve
EXPERIENCED TEAM
Core team of seasoned professionals with combined experience in real estate development and fund management industry, having managed AUM of over INR15,000 Cr and development upwards of 20 million sq ft
IDENTIFIED DEVELOPMENT PARTNER
Rustomjee Group - one of the leading developers in the MMR; with consistent annual sales of over INR1,000 Cr.overthe last 5 years and debt equity ratio of 0.32 (Q3FY23)
STRONG DEAL PIPELINE
Currently evaluating more than 15 deals across MMR. 4 deals with an investment of INR200 Cralready signed
CORPORATE GOVERNANCE
+
INDEPENDENT IC (INVESTMENT COMMITTEE)
Independent PMC & financial auditor for systems & controls of projects
Independent Investment Committee (IC) consisting of veterans from Finance and Banking Industry
Multiple levels of investor reporting enabling highest transparency in the value proposition
ABSOLUTE ALIGNMENTS OF INTEREST WITH SUPERIOR RETURNS
Structured to earn the equity upside in the return of the projects
Commencement of DM fee payment to Development Partner only after returning fund capital with a 12% return