This document discusses investment monitoring and portfolio management. It addresses the differences between portfolio management and secondary markets. It also discusses how investors can create value through board seats or by providing subject matter expertise. However, it notes that board seats have limitations and pain points. Subject matter experts can theoretically create value but may clash with entrepreneurs. The document also discusses designing management information systems and signs that investors should watch out for, such as revenue/expense quality. It concludes by discussing the difference between value addition and back seat driving when investors are monitoring companies in their portfolios.

1. Investment Monitoring &
Portfolio Management
Shailesh Vickram Singh
e: svs@seedfund.in
t : @svickram
w : fringenotes.in
1

2. Portfolio
PE / VC : Investment / Exits or Investment monitoring

3. Portfolio Management vs Secondary Markets
•Superior return through Value creation
•Manage downside - bottom of the portfolio

4. Portfolio Management ...
• Manage Information flow
• Avoid surprises
• Maintain check & balances to take timely
actions

5. Creating Value ?
• Board Seat
• Financial investors vs Subject matter experts
Can Investors really create value?

6. Creating Value : Board Seat
• Value creation or over rated monitoring
exercise

7. Board Seat : Advantage
• Help in quarterly monitoring
• Great 30,000 ft view
• Updated with all important resolutions /
observations
• Monitoring without interference
• Carrey weight to management & other
executives

8. Board Seat : Pain points
• Limited & restricted insight about Operations
• Using internal audit etc costly and not viable
for startups
• Innocent collusion
• Open to liabilities as per Indian legal system
• Not very effective in diagnosing problems
early

9. Value Addition : Subject Matter Experts
•Theoretically shall create great value
•Bring best practices !! but what are they?
•Many times experts cross path with entrepreneurs
•Lee Iacocca syndrome?

10. Value Addition

11. Value Addition : PE Funds prespective

12. Designing MIS Sytems
•Sales
•Profit
•Product development ( in early stage / pre
revenue)
•Speed
Or
•Action Points?

13. Signs !!! they are everywhere
•Quality of Revenue / Expenses
•Board members - Not so independent
•CFO or third cousin
•Last quarter spike syndrome
•Information sanctity

14. Pain points !!
•Management Comp?
•Budgeting ?
•ESOP
•Marketing budget ( in early stage)
•Associated companies / subsidiaries

15. Value Addition vs Back seat driving
•Intrusion or effective monitoring

16. Value Addition vs Back seat driving
•Communication, communication and
communication but maintain formal reporting
approval process intact
• Non personal reporting through centralized
•Its all business

17. • Thank You
• Shailesh Vickram Singh
• t ~ @svickram
• w ~ fringenotes.in