The LMVT Framework: Our Proprietary Four-Pillar Strategy for AIF Manager Selection

Picture this — you’re sitting across from two AIF managers.
 Both speak confidently, backed by data-heavy slides, long track records, and decades of experience.
 But deep down, you’re asking yourself one simple question:
 “How can you identify the next growth leader before everyone else does?”

That's why we developed the AIF LMVT framework—our proprietary four-pillar approach to identifying SMEs that deliver returns. As a SEBI AIF manager, we've refined this methodology through thousands of evaluations to ensure every investment decision stands on solid ground.

What is the LMVT Framework?

LMVT is Leadership, Moat, Valuation/Value Drivers and Tailwinds. Each pillar is a critical dimension of business excellence; only when all 4 are aligned do we see transformation in the portfolio value opportunity.

What makes our LMVT strategy different from conventional AIF due diligence frameworks? We don't just check boxes—we dig deeper, asking uncomfortable questions and demanding tangible proof at every stage. This systematic approach to choosing the right AIF has become the foundation of how we evaluate every potential opportunity.

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Behind every great company lies an exceptional leadership team.

Australian Premium Solar Ltd. exemplifies this pillar. Founded with a vision to make India self-reliant in renewable energy, it transitioned from a modest regional player to one of the country’s prominent solar manufacturers. The company’s management demonstrated foresight by investing early in technology and manufacturing infrastructure, aligning with national energy priorities years before they gained traction.

In the LMVT strategy, strong leadership combines integrity, foresight, and execution discipline.
Companies with high promoter commitment, operational transparency, and a history of consistent delivery often form the foundation of sustainable AIF investment portfolios.

In short, we bet on people who can see the future clearly and act decisively when the market can’t.

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In a world where capital and information move fast, the real question is — what protects your company’s profits?

Chemkart India Ltd. is a clear example. The company established a network of over 2,000 institutional clients in healthcare and wellness. This structure enables pricing power, customer loyalty, and reduced dependency on external suppliers — the hallmarks of a durable business model.

Within Alternative investment funds, such moats often reflect proprietary technologies, long-standing customer relationships, or unique supply-chain control.
They serve as natural shields, helping enterprises sustain earnings through economic cycles and competitive pressures.

Moats aren’t built overnight. They’re built through years of deliberate choices — ones that competitors can’t easily replicate.

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Even the best business can disappoint if bought at the wrong price.
That’s why our framework emphasises valuation discipline as much as growth potential.

Pushpa Jewellers Ltd. represents this balance well. With a 15-year legacy in gold jewellery manufacturing, consistent profitability, and deep industry expertise, the company’s valuation once lagged its fundamentals. Yet, strong balance-sheet discipline and stable cash flows made it an undervalued opportunity by traditional AIF performance metrics such as P/E, PEG, and EV/EBITDA.

The framework rewards companies with a clear margin of safety — those maintaining prudent leverage ratios, consistent shareholder value creation, and predictable long-term earnings growth.
This approach ensures that AIF investment decisions remain grounded in logic, not emotion.

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Even the strongest swimmers find it hard against strong currents. When the tide is rising, all boats are lifted - especially well-built ones. The fourth pillar will ensure we are investing with structural forces, not against it.

Kay Cee Energy & Infra Ltd. captures this dynamic perfectly. The company operates in India’s rapidly expanding power transmission and EPC infrastructure space — a sector benefiting from government-led capex, electrification initiatives, and energy transition programs. With a robust order book, technical expertise, and strong execution capabilities, it stands to gain from multi-year policy momentum.

The Tailwinds component of the LMVT framework AIF ensures that selected enterprises operate in environments where policy support, technological disruption, and demand growth reinforce one another.

How the LMVT Framework Works in Practice

As a SEBI AIF manager, we maintain rigorous standards, ensuring only the most promising opportunities enter our portfolio. Each pillar acts as a filter, and only companies that pass all four become actual alternative investment fund holdings.

When all four align—strong leadership, defensible moat, attractive valuation, and powerful tailwinds- we've found something special.

Why the LMVT Framework Protects Your Capital

Investment frameworks aren't just about finding opportunities; they're about avoiding disasters. Our LMVT framework AIF is deliberately conservative. By demanding excellence across all four dimensions, we eliminate companies that might look attractive on one metric but carry hidden risks elsewhere.

Think about it:

• Great leadership without a moat struggles as competition intensifies

• Strong moat with poor valuation delivers mediocre returns

• Attractively priced companies without tailwinds take decades to realise potential

• Companies with tailwinds need capable leadership to capture opportunities

The LMVT strategy ensures we never fall in love with a single attractive feature while ignoring critical weaknesses.

The Bottom Line: Discipline Creates Alpha

The LMVT Framework isn’t just a checklist — it’s our compass.
 It helps us stay objective in euphoric markets and decisive during downturns.

Every rupee we deploy undergoes a 360° test through the lens of Leadership, Moat, Valuation, and Tailwinds.
That’s how we separate stories from substance.

Because in a world full of noise, clarity is the ultimate alpha.
 And clarity is what LMVT delivers.

Want to learn more about how the LMVT framework AIF can work for your portfolio? Let's discuss your investment goals and how our methodology can help you achieve them in a 1 - 1 session.

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