AI Fund Awards 2017

24 Acquisition International - International Fund Awards 2017 InnoVen Capital JMH Asset Management Ltd Best Venture Lending Firm 2017 - Asia Best FoHF Strategy (3 Years): JMH Absolute Return SICAV SIF InnoVen Capital JMHAsset Management Ltd InnoVen Capital is the oldest and largest venture debt firm in India, and currently the only global platform with regional focus that has the capability to lend into the largest markets across Asia and the rest of the world. We profile this dynamic company and explore the secrets behind its success. JMH Asset Management (JMHAM) is an absolute return manager with a specific focus on being uncorrelated to the vagaries of the broader markets. We profile the firm and explore the secrets behind its success. Contact: Ajay Hattangdi, Group COO & CEO India Company: InnoVen Capital Address: 12th Fl, Express Towers, Nariman Point, Mumbai 400 021 Phone: 91.22.6744.6500 Email: [email protected] Web: www.innovencapital.com Company: JMH Asset Management Ltd Name: Johann Ropers/ Benedikt von Michel (Fund Managers) Email: [email protected] Web: www.jmham.co.uk Address: 37 Ixworth Place, SW3 3QH London Telephone: 02075912480 IF17034 IF17002 Established in 2008 under a different name, the firm was re-branded as InnoVen Capital following a buyout of the business in 2015. The platform has subsequently expanded with the setting up of the Singapore office in late-2015, and an office in Beijing which is expected to become operational in Q2 2017. InnoVen Capital has capital commitments of $200 million and a credit rating of AA- for its flagship India business. InnoVen Capital works with exceptional investors and management teams to fund leading companies through a range of venture debt solutions. Venture debt is a form of flexible debt capital which works in tandem with entrepreneurs and investors to help improve the ability of the company to increase enterprise value. The firm offers a range of debt solutions including venture loans, acquisition finance, and growth capital loans to venture equity-backed start- ups and bootstrapped growth companies. The typical ticket sizes range from $250k to $5 million and selectively go up to $7.5 million. InnoVen Capital also runs a Credit Assistance program through which the firm arranges for conventional bank financing for more mature companies in the portfolio. Founded in 2013, JMH Asset Management is a private investment firm that manages alternative investments for its partners and like-minded clients. The firm is authorized and regulated by the Financial Conduct Authority and based in London. Within the investment market currently, conventional equity/ bond asset allocation model is becoming increasingly ineffectual. After a thirty- year bull market in bonds and with many yields now in negative territory, equities and bonds are unlikely to continue working as effective offsets to each other. When equities fall, traditional government bonds will not act as much of a counterbalance any longer. JMHAM has therefore created an alternative fixed income portfolio to replace the function historically adopted by traditional fixed income. It produces interest or “carry” to act as a performance buffer whilst generating a return profile that is not correlated to the equity risk in a portfolio. The firm achieves this by investing in uncorrelated niche strategies which tap into an exciting structural opportunity set. The team cherry picks the most attractive activities which the banks have been forced to shrink down on account of increasing levels of regulation. Since inception, InnoVen Capital has backed over 100 leading high growth venture capital-backed companies with loan commitments exceeding $200 million. The portfolio includes marquee names like Swiggy, Yatra, Byju’s, Snapdeal, Freecharge, Myntra, Oyo, Practo, Capillary, Voonik, Pomelo Fashion, Conversant Solutions, and 123RF among others. Looking to the future, barriers to entry that have stood for decades are melting away. Every incumbent business is vulnerable to competition and disruption. InnoVen Capital is not immune to these changes which are perhaps happening at a more rapid pace in India and across Asia than have happened in the past in other markets. Widening its business model to include new ways of engaging the ecosystem through more than just venture debt will enable InnoVen to stay competitive and also tap into additional opportunities provided by the dynamic nature of the Asian venture ecosystem which is integrating swiftly. InnoVen Capital will also continue to push forward by continuing to grow its presence across the region with a new office in China in the coming months. This includes a broad range of direct lending strategies which offer a regular stream of “carry”, and various relative value, arbitrage or market making strategies formerly adopted by the investment banks’ prop desks. Furthermore, JMHAM takes a belt-and-braces approach to risk by being long volatility and hence providing protection in case correlations spike in an extreme market sell-off. Traditional asset classes are in JMHAM’s view unable to offer an appropriate returns for the risks being taken. Furthermore, the vast majority of managers fail to beat their most relevant index benchmarks on a consistent basis. JMHAM therefore believe there to be a better opportunity in seeking out less crowded strategies. When it comes to investing in alternatives, they avoid the more traditional areas such as equity long/ short and global macro. Instead, JMHAM’s universe consists mostly of “alternative alternatives”, typically in highly specific and specialised niches. Overall, JMHAM target a high single digit return stream with a very low correlation to both equity and fixed income markets and downside protection in times of stress, in order to ensure its investors encounter the lowest possible risk.