proposal to build a new generation pe firm

1. A Results with A Team SHAPE MSME
Strategy House of Active Private Equity
Concept, Model, Structure, and Operations
K V Ramesh
© 2010 K V Ramesh

2. Typical MSME Strengths/Issues
▲ Entrepreneurial Passion ▼ Management Bandwidth
▲ Niche Solution to Niche ▼ Operations Excellence
Problems ▼ Brand Equity – Power
▲ Friends & Family Support Network
▲ Access to Funds ▼ Financial/Fiscal Discipline
▲ Information Overload ▼ Information Management
▲ Skunk Set Up ▼ Infrastructure for Growth
▲ Flat Structure ▼ Statutory Compliance

3. Concept
 Value Creation through Pro-Active Management
 Propel SME businesses on growth path through
Active Investments
 Leverage Best-in-Class Resources & Networks
 Work on a 4 years Engagement Window
 De-Risk to protect Investments

4. Model
SHAPE Value
Investors
SME Creation
Value Distribution

5. Structure
Board of Directors
CEO
Business Directors
Business Directors
Investors Advisors Business Directors
Management
Management Administration
Management Management Management
Executive
Advisor Analysts (2)
Assistant

6. Operations
 Each Business Director to Manage a portfolio of size X
and entities Y in SME space
 Operate with a high degree of independence within
the Organization Framework
 Facilitate the entities’ growth (100%,50%,33.33%,25%)
through expertise & network
 Deliver results as Agreed To

7. Business Director KRA s
 Identify Opportunities that meet the Goal
 Recommend Investment (Controlling Interest and
NOT Operating Interest) – Max 49%
 Define Contract Terms with the SME (s)
 Serve the SME Board (s)
 Facilitate meeting the Objectives
 Manage the BD Office

8. Business Director/Advisor Induction
 Only by Invitation – No Advertisements
 Invitation Criteria:
 Energy Level
 Industry Standing
 Emotional Maturity
 Compensation
 Fixed, plus
 % on Value Creation
 Renewable Contracts

9. Financial Projections

10. THANK YOU
I can be reached at the.kvr@gmail.com