Equitree Capital Advisors Surpasses ₹1,000 Crore in Assets Under Management

Equitree Capital Advisors Pvt. Ltd., a firm registered with the Securities and Exchange Board of India (SEBI) offering Portfolio Management Services (PMS), has achieved a significant milestone by crossing ₹1,000 crore in Assets Under Management (AUM). The firm opened its PMS to external investors in March 2020. Founded in 2012 by Pawan Bharaddia and Ssuneet Kabra, Equitree Capital specializes in identifying and investing in listed small and micro-cap companies, following a meticulous research-driven framework aimed at finding scalable businesses with strong management.

Its flagship 'Emerging Opportunities PMS' typically holds a concentrated portfolio of 12 to 15 companies. Pawan Bharaddia, Co-founder and Chief Investment Officer, attributed the growth to the consistency of their investment process and the trust placed by investors, emphasizing their long-term goal of compounding earnings in small and micro-cap companies. Ssuneet Kabra, Co-founder & CEO, highlighted the firm's commitment to investing in research talent, technology, and investor engagement to foster further growth and create long-term value.

Equitree Capital plans to cap its Emerging Opportunities PMS fund at approximately ₹2,000 crore, or when its current portfolio holdings become fully invested. The firm currently serves over 350 investors, including high-net-worth individuals, family offices, and professionals. Headquartered in Mumbai, Equitree Capital reports an impressive five-year compound annual growth rate (CAGR) of 43 per cent.

Impact This news signifies growing investor confidence in specialized PMS offerings, particularly those focusing on small and micro-cap segments. It reflects positively on the asset management industry in India and may attract further capital into similar investment vehicles. The firm's growth strategy and focus on research are key takeaways for investors in this segment. Rating: 6/10.

Difficult Terms: SEBI: Securities and Exchange Board of India. The statutory body responsible for regulating the securities market in India. Portfolio Management Services (PMS): A service offered by financial institutions where a professional manager handles a client's investment portfolio based on defined objectives. Assets Under Management (AUM): The total market value of all assets that a financial institution manages on behalf of its clients. Small-cap companies: Publicly traded companies with a relatively small market capitalization, typically in the range of ₹100 crore to ₹1,000 crore in India. Micro-cap companies: Companies with an even smaller market capitalization than small-cap companies, generally below ₹100 crore in India. Scalable businesses: Companies that can increase their revenue and profits significantly without a proportional increase in costs. Compound annual growth rate (CAGR): The average annual growth rate of an investment over a specified period, assuming profits are reinvested. High-net-worth individuals (HNIs): Individuals who have a substantial net worth, often defined as having liquid financial assets above a certain high threshold (e.g., US$1 million).