VC Fund & Portfolio Advisory

Challenge

A first-time fund manager with a strong operating background wanted to set up a Category II AIF. They had commitment from anchor LPs but lacked experience with SEBI regulations, fund structuring, and the operational infrastructure needed to run a fund. The PPM and contribution agreement were drafted by a lawyer but had no financial modeling for management fee waterfall, carry calculations, or LP return scenarios.

Our Solution

Provided end-to-end fund setup advisory: reviewed and revised the financial sections of the PPM, built a fund economics model (management fee, hurdle rate, catch-up, carried interest under European waterfall), designed the LP reporting framework, set up the fund accounting system, and prepared the first NAV computation methodology note aligned with IPEV guidelines. Also conducted FDD on the first 2 potential investments.

Result

Challenge

A PE fund with 8 portfolio companies across sectors was struggling with inconsistent financial reporting from investees. Some companies reported monthly, others quarterly, and 2 had not submitted financials for 6+ months. The fund's NAV computation was being challenged by LPs as it relied on outdated financials and inconsistent valuation methodologies across the portfolio.

Our Solution

Implemented a standardized portfolio monitoring framework: designed a common MIS template for all 8 companies, established reporting deadlines with escalation protocols, and conducted site visits to the 2 non-reporting companies to reconstruct recent financials. Rebuilt the NAV model using consistent IPEV-compliant methodologies — revenue multiples for growth-stage companies, EBITDA multiples for mature ones, and recent transaction price for recently funded companies.

Result