We have a deliberate, collaborative, and highly disciplined investment process. For each proposed investment, our investment committee reviews the detailed investment memorandum and related financial projections for the proposed portfolio company.

Key Investment Factors and Principles

Our fixed income team conducts a rigorous and ongoing analysis of current and potential investments that focuses on five major factors: credit standards, management quality, valuation, relative asset class valuation, and our views on macroeconomic conditions. Building on these factors, we are guided by the following key principles:

Credit Philosophy

We have an intense focus on it as part of our ongoing analysis of each investment opportunity — this includes anticipating credit performance by analyzing the competitive environment and industry dynamics.
Fundamental Investing vs. Momentum: We are driven by company and investment fundamentals, rather than “momentum” driven investments.

Multi-Asset Class Strategy

We invest in multiple classes of assets that allow us to rotate sectors as industry and economic factors dictate to generate attractive, risk-adjusted returns under our operating and tax model. The scale of global infrastructure investment demand is enormous. There is a growing need to replace or expand infrastructure, including for roads, railways, ports, airports, power and energy assets, communications networks, and more. According to the Organization for Economic Co-operation and Development, an international organization helping governments engage the challenges of a globalized economy, the investment need is as high as $3 trillion annually. Traditional public funding sources have been unable to keep pace with this global investment need. Moreover, current economic conditions are likely to cause funding challenges to increase for the foreseeable future. We believe that the foregoing factors, taken together, create tremendous opportunity for private capital investment in infrastructure.

Our principal growth strategy has been to expand our existing investment businesses and to enter attractive new business areas. While recent growth has come from our private equity and secondary investments through our in house team, we see opportunities to develop and sponsor new investment vehicles and structures. These may include raising new types of funds, such as infrastructure funds, mezzanine funds and  geography or industry-specific funds. We believe these new opportunities will allow us to increase the amount of third-party capital we can commit to individual transactions, thereby growing our assets under management and capturing additional income streams.

Sizing

We want to be contributors to companies that have the chance to become very significant. This requires us to cut cloth according to circumstances because companies require different amounts of venture capital at various stages. Bearing in mind that the very best seed and early stage companies evolve into great growth companies. As a result, Goldstone Capital has had the good fortune to be an investor in a long list of growth stage companies.

Setting

We believed in India long before it became an attractive destination for venture capital. Almost every company we've backed has a very strong connection to India. We get excited when we meet companies that exhibit a similar focus in identifying their markets and are not distracted by adjacent or other markets.

Appetite

High-quality fast growing companies form our beat. We follow a top down approach in Investing and can invest in any company where we feel we can partner with the Management in making it World Class