Systematic Investment Planning

How to Do Financial Due Diligence Before Selecting Stocks? Stock picking isn’t just about looking at charts and following trends—it’s about understanding the financial health of a company. Before investing, a structured Financial Due Diligence (FDD) process can help you avoid bad bets and spot strong opportunities. Here’s a framework to follow: 1. Understand the Business Model & Industry - What does the company do? - Who are its competitors? - Is it in a growing or declining industry? 2. Analyze the Financial Statements - Income Statement (Profit & Loss) – Revenue growth, profitability (Gross, Operating, Net Margins), EPS trends - Balance Sheet – Debt levels, cash reserves, working capital position - Cash Flow Statement – Operating cash flow vs. net income, free cash flow trends 3. Check Key Financial Ratios - Profitability: ROE, ROA, Gross & Operating Margins - Liquidity: Current Ratio, Quick Ratio - Leverage: Debt-to-Equity, Interest Coverage - Valuation: P/E Ratio, P/B Ratio, EV/EBITDA 4. Assess Management & Governance - Background & track record of leadership - Insider buying/selling trends - Transparency in disclosures & corporate governance 5. Review Competitive Position & Moat - Does the company have a sustainable competitive advantage (brand, network effect, patents, cost advantage)? 6. Industry Trends & Macroeconomic Factors - Economic cycles, inflation, interest rates - Global supply chain, geopolitical risks - Market trends affecting revenue streams 7. Cross-Check with Analyst Reports & News - Read Equity Research Reports, Investor Presentations, Credit Reports - Stay updated on company news, regulatory changes 8. Look at Historical Performance & Future Guidance - Compare past financials vs. projections - Evaluate management’s growth expectations 9. Risk Assessment & Downside Protection - What’s the worst-case scenario? - How resilient is the business in a downturn? 10. Compare with Peers & Make an Informed Decision No company operates in isolation—compare financials and valuations with competitors before buying. Smart investing is about discipline, not hype. By doing thorough due diligence, you increase your chances of picking winners while avoiding pitfalls. What’s your go-to method for analyzing stocks? Let’s discuss.

Charting the Path Forward: Preqin, the leading data service and analytics firm serving the Alternative Asset universe just released a special report with some very interesting insights. Private credit has emerged as the standout performer vs. all other alternative asset classes, in terms of the step-up in return expectations for the next 6 years as shown in the chart below. Preqin’s analysis forecasts an impressive 12% Net IRR for private credit over the next six years, a substantial increase from the 8.1% achieved during the previous six-year period. Other alternative asset classes also look promising; however, many sectors face downward pressure on returns, According to Preqin's forecasting model, private equity, venture capital, natural resources, and fund of funds are all projected to experience diminished returns compared to the past several years. In contrast, secondaries, real estate, and infrastructure join private credit in the positive column, though none match private credit's dramatic improvement. Private Credit has come of age given its growth, the emergence as a major alts asset class that joins the ranks of Private Equity as a leader that is capturing the capital allocators wallet. Private Credit is comprised of three sub-sectors: Direct Lending, Asset-Based Lending, and Opportunistic strategies. What makes private credit particularly compelling is its risk-adjusted performance. Although Preqin's analysis doesn't explicitly address volatility-adjusted metrics, it's evident that private credit would rank first in this category since it has consistently delivered attractive absolute returns with the lowest level of volatility compared with the other alternative asset classes. Creating an attractive risk-return profile for investors who seek both yield and relative stability is the hallmark of private credit. This re-rating positions private credit in a strong position for the coming years to come as capital allocators evaluate their alternative asset allocation model. Where do you intend to allocate your capital?

Sheikh Tahnoon Bin Zayed Al Nahyan: Strengthening the UAE & US Strategic Partnership at the White House During a high-level meeting at the White House, His Highness Sheikh Tahnoon bin Zayed Al Nahyan, UAE’s National Security Adviser, and President Donald J. Trump engaged in discussions to expand bilateral cooperation across these key industries. The UAE & US strategic partnership continues to evolve, fueled by economic growth, technological innovation, and sustainable development, with rising investments in AI, infrastructure, energy, healthcare, and industrial innovation, shaping the future global economy. 1. Trade & Investment Growth: • 2024 UAE & US trade reached $34.43 billion, a 9.47% increase from 2023 in a significant rise. • The UAE is the US’s largest trading partner in the Middle East, reinforcing its role as a global economic hub. 2. US Trade Surplus & Job Creation • The US trade surplus with the UAE hit $19.5 billion, up 6.9% year on year, ranking 4th globally. • All 50 US states engage in UAE trade, supporting 120,000+ American jobs, especially in aviation, defense, and energy. 3. Foreign Direct Investment (FDI) • The UAE ranks among the top 20 foreign investors in the US, with $35B+ in FDI across real estate, tech, logistics, and finance. • The US remains a key investor in the UAE, focusing on renewable energy, smart infrastructure, and AI. AI & Technology Investments 1. AI Market & Global Leadership • The UAE’s AI sector is set to hit $46.33 billion by 2030, contributing 14% ($100B) to GDP. • AI investments fuel economic diversification, making the UAE a global AI powerhouse. 2. $100 Billion AI Investment Fund • The UAE launched MGX a $100 billion AI-focused firm. • MGX & BlackRock and Microsoft are developing AI-powered data centers & infrastructure. 3. US & UAE AI Collaborations • In April 2024, Microsoft invested $1.5 billion in G42 one of the largest US tech deals in the UAE. • Joint AI projects span healthcare, cybersecurity, fintech, and defense. 4. Blockchain & Digital Finance • MGX $2B investment in Binance signals UAE’s commitment to Web3 and digital finance. Energy & Sustainability Investments 1. $70 Billion UAE Investment in US Energy • UAE energy giants ADNOC Group & Masdar (Abu Dhabi Future Energy Company) have invested $70B+ in US clean energy. • UAE backed projects align with US renewable energy goals. 2. Smart Infrastructure & Green Economy • Masdar is expanding solar & wind projects in the US, reinforcing UAE’s sustainability leadership. • Investments in smart cities & clean tech drive long-term economic growth. A Blueprint for Global Economic Leadership The UAE’s commitment to innovation, sustainability, and global collaboration is reshaping economies and industries worldwide. Together, the UAE and the US are pioneering AI-driven economies, clean energy solutions, and investment strategies that will define the future of global economic leadership.

SEBI Enforcement Spotlight: A Wake-Up Call for Fund Managers SEBI’s recent settlement in the Edelweiss matter is certainly unambiguous: having a written Conflict-of-Interest (CoI) policy is mandatory, but not enough. Regulators such as SEBI want evidence that policies adopted by the AIFs actually operate: i.e., committees must meet, recusals must be documented, disclosures must match trustee reporting, and governance failures must be remedied with real, verifiable action. For AIF Sponsors, Managers and Trustees, this is the time to convert governance rhetoric into repeatable, auditable practice. Quick, actionable takeaways for Funds - Operationalise your CoI policy: Don’t let the policy live in a drawer. In other words, schedule committee meetings, record recusals, and keep minutes that explain decisions and rationale. - Build independent oversight: A Fund Board with independent members and a dedicated Governance/Conflict Committee materially strengthens your compliance posture and investor confidence. - Make CTR & trustee reporting airtight: Ensure trustee submissions are accurate, fully evidenced and senior-signed before filing. Inaccurate reports are a clear regulatory trigger. - Segregate functions: Keep sourcing, voting and investor-relations roles distinct. Require written recusal forms and preserve the audit trail. - Test, review, disclose: Run periodic independent reviews (internal audit or external) and promptly disclose any material policy changes or conflicts to LPs. Fund Managers should treat this order as both a warning and a practical instruction manual: don’t let CoI policies sit in a file. Instead, embed them into everyday operations. Run regular committee meetings, require documented recusals, tighten trustee reporting, and schedule independent tests of your controls. These simple, consistent actions prevent conflicts from turning into crises, safeguard investor capital and protect your fund’s reputation, while showing LPs and regulators that every decision is made fairly, transparently, and in the best interests of unitholders. Ultimately, effective conflict management is an investor safeguard. It ensures decisions uphold fiduciary integrity, protects trust, and reinforces the credibility of India’s AIF ecosystem. ANB Legal I Akshat Tripathi #SEBI #AIF #FundManagement

Here is how you start a Venture Capital fund from scratch:   🌍 We help launch half of the world’s VC firms annually, and I want to share the steps New Managers take to take their VC firm from idea to reality.   In many ways, setting up a VC fund is very different to setting up any other type of company.   You’re operating in a very regulated space, setup costs are steep, and chances of success are slim.   These steps are easier read than done, but it’s the endlessly stress-tested blueprint.   💎 DEVELOP THESIS 💎 This clear and concise statement outlines the fund’s investment focus and strategy. Think of this like the value proposition of the VC fund. 💎 TEST THESIS 💎 Go out to relevant people in your network to solicit feedback for your fund’s thesis. A good thesis can convert 1 in 5 LPs it is pitched to. 💎 FUNDRAISE 💎 Engage your 1st-degree network to identify potential Limited Partners (LPs), seek introductions to 2nd-degree LPs, and pitch your fund. Encourage genuinely interested LPs to reserve a spot by signing a non-legally binding ‘PACT’. IMPORTANT NOTE: Talking about the fund to people you do not know is illegal❗️ 💎 PREPARE MATERIALS 💎 Create your pitch deck, a data room, financial projections, etc., while fundraising. 💎 LAUNCH 💎 Once you have enough commitments in PACTs (generally about 10% of your target fund size), you can engage a fund formation and fund administration provider to set up and run the back office of your fund. 💎 CALL CAPITAL 💎 Now that you have a legal entity, you can get your Limited Partnership Agreements (LPAs) signed by LPs who signed the PACT and call capital. 💎 DEPLOY 💎 That’s it – you are now an operational Venture Capital fund, and you can start making investments that are going to change the world. 💎 FUNDRAISE (AGAIN) 💎 While deploying capital, you continue getting PACTs from new LPs, converting them into LPAs, and carrying out capital calls until you have reached your target fund size.   There we go, that's the (on a high-level) process you want to follow.   Note that the order here is quite important.   For example: ❌ You do not want to spend a ton of money on legal fees before you have even tested your thesis in the market and iterated on it. ❌ Or, there’s no point in setting up all the fund materials before you can get a couple of LPs in your close network to want to invest in your fund.   Just like you would expect from a startup founder:   Setting up a Venture Capital fund is an iterative process where you test your proposition in the market before spending time, money, or other resources perfecting the product. If you're on this journey good luck, and know we're here to help ✊🩵

🔊 Long-term Outlook Series – Alternatives. In this new era of higher growth, we're also anticipating increased inflation and bond market volatility. That's why incorporating alternative assets may be more essential than ever in crafting resilient long-term portfolios. By leveraging assets that a) have positive gearing to inflation, like infrastructure and commodities, and b) stand to benefit from anticipated capital spending and innovation, such as private equity, you may achieve valuable diversification and unlock potential for enhanced returns. The chart shows the ‘’efficient frontier’’ of major asset classes over the last 30 years. The role of alternatives, when adding them to a mix of 60% stocks and 40% bonds, is to enhance returns whilst smoothing the ride. But remember, investing is always about trade-offs and, in the case of alternatives, investors give up liquidity (i.e., you can't always get your money back quickly).

Fixed Income Fundamentals: Bond Characteristics (Cheatsheet) Bonds are debt instruments used by entities such as governments and corporations to raise capital. Regardless of the issuer, all bonds share a core set of characteristics: issuer, maturity date, coupon, face value, and yield. At their core, bonds work much like loans. When you invest in a bond, you're effectively lending money to the issuer. In return, the issuer agrees to repay the principal on a future date (the maturity date) and typically pays interest at regular intervals along the way. Most bonds are tradable, with a relatively liquid secondary market. This means that investors can sell a bond to another party before maturity and recoup their investment, without waiting for the bond to mature. Let's break down the core characteristics of a bond: Bond Issuer: The issuer is the entity borrowing funds and is responsible for making interest payments and repaying the principal. Common issuers include: • Governments • Supranational institutions • Corporates • Municipal authorities Many bonds are assessed by credit rating agencies based on the issuer's credit worthiness and risk of default. One issuer can have multiple ratings across different bond issues. Maturity Date: This is when the principal is repaid to the investor. Maturities can vary widely from overnight to 30+ years. Coupon: The coupon is the fixed annual interest rate that the issuer pays, expressed as a percentage of the bond's face value. Example: A 4% coupon on a $1,000 bond = $40 annual interest. Most bonds pay interest annually or semi-annually. Face Value (Par Value or Notional): This is the amount the bondholder receives at maturity. Example: A bond with a $5m face value means $5m will be repaid at the end of the term. Bond Price: Bonds are bought and sold on the secondary market at a price quoted as a percentage of face value. Example: If a bond trades at $102% (i.e. a 2% premium), buying $100 million of face value would cost $102 million. Bond prices fluctuate based on changes in interest rates, credit risk, inflation expectations and broader market sentiment. Bond Yield: The yield represents the return an investor earns from the bond, based on its current price. Bond Yield = Annual Coupon Payment/Current Bond Price Example: A bond with a $40 coupon trading at $1,000 has a 4% yield. If it trades at $1,020, the yield falls to 3.92%. Bond prices and yields move inversely: • When prices rise, yields fall • When prices fall, yields rise These characteristics underpin the cash flow profile and risk/return dynamics of any bond. Whether you're analyzing sovereign debt or high-yield corporates, understanding these fundamentals is essential to understanding fixed income markets. Financial Edge Training

🎯 Your reporting can make or break relationships with your investors. After helping dozens of tech scale-ups optimize their reporting, here's what actually moves the needle. The 5 Non-Negotiables of Stellar Investor Reporting: 1. Strategic Context: Raw numbers without context are just noise. Start with your north star metrics and how recent decisions/market changes have impacted them. We had a founder who turned around an investor relationship simply by reframing their reporting around strategic objectives rather than just MoM changes. 2. Forward-Looking Indicators: Your investors aren't just interested in what happened. They want to know what's coming. Include Lead KPIs (sales pipeline quality, customer acquisition costs trends, churn prediction models). One of our scale-ups spotted a potential cash flow issue 3 months early through careful leading indicator tracking. 3. Transparent Risk Assessment: Here's where many founders get it wrong. They try to sugarcoat challenges. In my experience, investors respect founders who proactively identify risks and present mitigation strategies. It shows maturity and builds trust. 4. Consistent Cadence & Format: Sounds basic, but you'd be surprised. Pick a format that works for your stage (we can help with templates), stick to a regular schedule, and make sure historical data is easily comparable. Your investors should never have to ask, "Where's the report?" 5. Action-Oriented Updates: End every report with clear next steps and specific areas where you need investor support. Make it easy for them to add value beyond the capital. 🔑 Pro Tip: Create a "living" reporting template that evolves with your business. What worked at Seed won't cut it at Series B. 💭 Founders: What's the most valuable piece of feedback you've received about your investor communications? 💭 Investors: What's the best investor update you've seen and why? #VentureCapital #ScaleUps #InvestorRelations #CFOInsights #FinanceLeadership

Why Alternatives, and Why Now? Markets shift, cycles turn, and investors ask the same question: How will alternatives hold up when the tide changes? We’ve run the numbers, mapped out the scenarios, and here’s the takeaway: Alternatives remain relevant across bull, bear, and base cases—but how you allocate matters. 🔴 Bear Case: Market Disruption Recession, geopolitical risk, and tighter liquidity? Equity markets struggle, defaults rise, and risk tolerance fades. • Private Equity: Distressed buyouts gain traction as secondary markets pick up bargains. • Macro Hedge Funds: A bright spot—volatility creates opportunities in FX and rates. • Private Credit: Defaults climb, but high-quality credit holds steady. • Infrastructure: Defensive assets like utilities and essential services remain resilient. ⚪ Base Case: Stabilization & Modest Growth Rates stabilize, inflation stays in check, and markets tread water. • Private Equity: Mid-market buyouts and secondaries thrive, while defensive sectors like healthcare attract capital. • Macro Hedge Funds: Systematic strategies benefit from macro trends. • Private Credit: Direct lending remains a steady performer. • Infrastructure: ESG and sustainability-linked projects attract capital. 🔵 Bull Case: Accelerated Growth Global expansion, rate cuts, and rising optimism fuel risk-taking. • Private Equity: Tech, AI, and healthcare see surging valuations. • Macro Hedge Funds: Trend-following strategies ride the market wave. • Private Credit: Yield-seeking investors move into structured financing. • Infrastructure: Capital floods into renewable energy and transport projects. My Take? The case for alternatives isn’t binary—it’s about resilience, flexibility, and knowing where to lean in. When equity beta wobbles, alternatives offer a playbook for every market regime. As Howard Marks put it: “You can’t predict. You can prepare.” Are you positioned for what’s next? #Investing #Alternatives #Markets #PrivateEquity #MacroHedgeFunds #PrivateCredit #Infrastructure

Raising a Venture Fund? Here’s What I’ve Learned Raising $23 Million Dollars💰 Fundraising as a first-time VC is a grind. Last week, my friend Kevin Jurovich did a great list of tips for first time founders, so I’m inspired to share my first time VC tips. (Btw, follow him, he’s great) Here are my top 7 takeaways: 1️⃣ LPs invest in you, not just your thesis. Your ability to access top deals and generate returns matters more than your deck. Trust is everything. 2️⃣ Start small to go big. Raising $10M-$25M first builds credibility and momentum. Too many first-time GPs aim for $50M+ and stall. 3️⃣ Fundraising takes longer than you think. Plan for 12-18 months. LPs move at their own pace, and closing capital is rarely a straight line. 4️⃣ Rejections aren’t personal. A “no” often has nothing to do with you. Some LPs have capital tied up elsewhere or just aren’t ready. Keep moving. 5️⃣ Momentum attracts money. When one LP commits, use it as leverage to bring in others. Scarcity creates demand. 6️⃣ Confidence is a game-changer. LPs can sense hesitation. Walk into every meeting like they’d be lucky to get into your fund. 7️⃣ LP relationships don’t end at the close. Set clear expectations, send regular updates, and don’t just rely on email—pick up the phone. Remember: It’s a long game. 99% of people never get off zero. Simply not giving up is often what sets you apart. I hope these tips inspire you on your investing journey — especially, since less than 5% of VCs are women. What else do you want to know from a VC? 👇🏼 #vc #investor #startups