Case Studies

Private Equity: Information Memorandum for proposed new PE fund

Client Background
  • A boutique Consulting firm in the Middle East which provides investment advisory services in the Oil & Gas industry. Our client was advising a leading investment consortium in the region which was planning to launch a Private Equity fund to invest in the Oil & Gas industry.
Business Context
  • Due diligence and independent research to study the investment potential in the core Oil & Gas industry in MENA (with a focus on Saudi Arabia) and the ancillary services market.
Our Approach & Solution
  • We engaged a team of sector specialists who first conducted in depth secondary research on the investment opportunity. This was followed up by tapping into a target group of industry experts based in the region. Subsequently, our analysts traveled to UAE, Saudi Arabia to conduct primary research i.e. face to face interviews with industry experts and select corporates to verify our hypothesis.
  • Prepared an Investment Memorandum detailing rationale for PE investments in the Oil & Gas sector. Study helped generate a pool of specific investment ideas for our client.
Results Delivered
  • Helped our consulting client advise on an initial investment of US$200mn.
  • Successful pitch on the above has positioned our client for a US$5bn portfolio.

Equity Research: Expand Research Coverage for Investment Bank

Client Background
  • A leading full-service middle-market Investment bank on Wall Street. The client was in the process of building capabilities in new sectors.
Business Context
  • Showcase research capability to support banking mandates in new sectors. Initiate coverage on Regional Banks, Shipping, Auto Parts, Agriculture, China ADRs while avoiding high fixed cost commitments.
Our Approach & Solution
    Karvy's offshore analyst team worked with the Director of Research to initiate coverage on these new sectors. Our team handled the end to end equity initiation process of building financial models, conducting due diligence through secondary research and interactions with company management, valuations, writing full fledged initiation reports with investment recommendations.
Results Delivered
  • Initiated coverage on over 40 stocks within 9 months, white-labeled published with the Head of Research as author.
  • Engagement priced on a per ticker basis for the first year of coverage helped client save 60-70% in costs.
  • Client received a banking mandate from one of the 10 regional banks initiated in the first 3 months of our engagement.

Investment Banking: ad-hoc offshore Analyst support

Client Background
  • A boutique Investment bank based in Philadelphia, U.S focused on Financial technology and Information Management sectors.
Business Context
  • The client required ad-hoc analyst bandwidth to support their six senior bankers.
Our Approach & Solution
  • Karvy's offshore analyst pool was tapped to provide need based support with varying bandwidth requirements of the client. A single point of contact who is a sector specialist was assigned to the client to help in seamless workflow management.
  • Support included conducting industry research on niche sub-sectors, creating company profiles, maintaining databases of comps, assisting in pitch book creation, post deal support including M&A modeling and valuations.
Results Delivered
  • Significant cost savings as the client did not have to commit to staffing full time analysts.
  • Senior bankers spent a greater amount of their available time meeting with clients and pursuing mandates while all desk based research activity was conducted offshore by Karvy analysts.

Asset Management: Investor Presentation for New Fund Launch

Client Background
  • The asset management division of a leading Financial services conglomerate in Oman.
Business Context
  • The client was in the process of launching a new GCC fund and required help to prepare a theme based presentation to support its marketing activity and pitch the idea to Europe based HNI investors.
Our Approach & Solution
  • Karvy created a 30 slide investor presentation highlighting key investment themes in the GCC region and the advantages of investing in the client's fund.
  • As this was an index fund, we followed a top-down approach analyzing the macro economic scenario including Oil price outlook, government budget spending, demographic profiles and consumer spending, credit growth, political scenario, investment flows, corporate fundamentals and stock valuations.
Results Delivered
  • Delivered a comprehensive presentation within 3 weeks.
  • The client engages Karvy for all future investor presentations and other internal research requirements.

Corporate: Market Entry Strategy for Insurance Company

Client Background
  • A leading UK based Life Insurance Company was exploring options for entering the Latin American market and assessing potential distribution channels.
Business Context
  • The Corporate strategy team wanted to better understand the opportunities and challenges of entering a new market and the relative capabilities of a shortlisted Bancassurance partner.
Our Approach & Solution
  • Karvy conducted an in depth analysis on each of the 4 countries of interest in Latin America highlighting the key growth drivers, demographic profiles and the most promising product segments and distribution channels.
Results Delivered
  • Prepared a successful pitch to the prospective bancassurance partner, highlighting the shortcomings of their partnership with a rival insurance company and the benefits of partnering with the client.

Client Solutions & Karvy Global Services

Client Background
  • Client is the authority on specialty bill review services.
Business Context
  • The client required support on their Bill Review processes. This required KGS to access the client’s servers through secure remote desktop connection.
Our Approach & Solution
  • KGS had hired experienced associates to deploy on the processes. Client had provided offshore training which helped in establishing a strong foundation for the process. Regular review calls are conducted to understand the performance of the team. KGS is also certified for QMS and ISMS which have helped in establishing practices to understand anomalies and safeguard confidential information. A full fledged BCP / DRP is in place to ensure that there is no/minimal effect on the deliveries in exigencies. Refresher trainings are periodically conducted to ensure that all updates are cascaded effectively. Over the years KGS has always responded proactively to sudden variation in volumes and have been flexible to accommodate and adapt to changing priorities at short notices.
Results Delivered
  • KGS has increased efficiencies by over 70% and has always delivered within agreed TAT with 99%+ accuracy.
  • Currently deliver over 25,000 bills every month and are in the process of building capacity for double the volume KGS derives at least 30%-40% cost benefit and adds value by constantly upgrading its skill sets and spreading deliveries by supporting other processes up the value chain.
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