Founding Partner BlueGreen VC | top tier investment returns + 2 IPOs Ixigo &Mobikwik | 2X Founder | fundraiser | IC IRMA Iseed | CMO -Jio,Infosys,Colgate | IIMB
Mumbai, India
Joined October 2007
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8/8
There’s a much bigger question about what happens when insurance, PE and private credit become increasingly intertwined.
But that is a post for another day...
But PE is acting on sage advice from the sage of Omaha- and acquiring insurance companies hand over fist.
End.
7/8
A data center requires billions upfront.
It also generates contracted cash flows over many years.
Making AI infrastructure good assets for private capital.
Follow the money
𝗔𝗜 → 𝗗𝗮𝘁𝗮 𝗖𝗲𝗻𝘁𝗲𝗿𝘀 → 𝗣𝗿𝗶𝘃𝗮𝘁𝗲 𝗖𝗿𝗲𝗱𝗶𝘁 → 𝗜𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝗖𝗮𝗽𝗶𝘁𝗮𝗹
6/8
Because insurance gives them something extraordinarily valuable:
𝗟𝗼𝗻𝗴-𝗱𝘂𝗿𝗮𝘁𝗶𝗼𝗻 𝗹𝗶𝗮𝗯𝗶𝗹𝗶𝘁𝗶𝗲𝘀.
Those can be matched against long-duration assets generating contractual cash flows.
Private credit. Infrastructure. And…
𝗗𝗮𝘁𝗮 𝗰𝗲𝗻𝘁𝗲𝗿𝘀.
5/8
Apollo built around Athene.
KKR acquired Global Atlantic.
Brookfield, Carlyle, Blackstone, Ares, Sixth Street and others have acquired, created or partnered with insurance platforms.
Why would alternative asset managers be so interested in boring old insurance?
4/8
𝗜𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝗳𝗹𝗼𝗮𝘁.
Insurers collect premiums today but may pay claims years -sometimes decades - later.
That creates enormous pools of predictable, long-duration capital.
Capital that can wait.
And Wall Street / PE noticed.
3/8
𝗪𝗵𝗲𝗻 𝘁𝗵𝗲 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝘆 𝗳𝗶𝗻𝗮𝗹𝗹𝘆 𝗮𝗿𝗿𝗶𝘃𝗲𝘀, 𝘄𝗵𝗲𝗿𝗲 𝗱𝗼𝗲𝘀 𝘁𝗵𝗲 𝗺𝗼𝗻𝗲𝘆 𝗰𝗼𝗺𝗲 𝗳𝗿𝗼𝗺?
Most investors already have their money invested.
PE funds have investment periods and have to return capital to LPs.
Buffett had something else
2/8
To understand that, go back to Warren Buffett.
Buffett’s famous advice is simple:
Wait patiently. Don’t chase markets. When great assets become available at great prices, buy aggressively.
There’s just one problem with that advice…
1/8
𝗪𝗵𝗼 𝗶𝘀 𝗮𝗰𝘁𝘂𝗮𝗹𝗹𝘆 𝗳𝘂𝗻𝗱𝗶𝗻𝗴 𝘁𝗵𝗲 𝗔𝗜 𝗯𝗼𝗼𝗺?
AI needs GPUs. GPUs need data centers. Data centers need land, power, cooling, fibre and staggering amounts of capital.
That money is coming from 𝗽𝗿𝗶𝘃𝗮𝘁𝗲 𝗺𝗮𝗿𝗸𝗲𝘁𝘀.
Where are they getting it? 🧵
Had a bizarre experience with @tradingview support today.
India market data is delayed by ~20 minutes- can’t even raise a support ticket unless you first navigate a clunky, opaque AI chat assistant.
Ironically, AI hurting TradingView’s reputation than improving experience.
@OLX_India tone deaf response ! Areeybhai ham first chat me phone number share karna hi nahi chahte! Risky hai! Why are you forcing me to?
Hey @OLX_India, stop auto-sending chats with my name and number without my permission. I want control over when i share my number — not some idiotic AI message that exposes my info.
Fix this. It’s a terrible UX. #privacy #UXfail
4 hour wait for a physical pass after registration? #GFF24 - queues remind me of darshan at #siddhivinayak temple whatever happened to India going digital??
I thought IRB InvIT would be a good dividend play, but it’s been a dud. Bought at ₹70.2, now it's at ₹63.2. I’m down -10% capital, -4% net- this is when the entire market up ~20%, clear miss. Dumping it. #IRBInvIT #CapitalTrap #MarketPerformance #irbinvit
It’s 2024 and podcasts still can’t get their programmatic ads right? Miltiple times a day I am treated to a mindnumbingly inane ad on how #TotalEnergies will help India deliver energy- foreign accent ( seriously ) you are very irritating!
Huge electricity bills at Kanakia Paris, @kanakia_spaces! Fluctuations @Adani_Elec_Mum Requesting @gautam_adani, @AdaniOnline, @AdaniPriti, and @AdaniKaran to investigate and resolve cause. #AdaniElectricity #PowerFluctuations #ElectronicsDamage #BillingConcerns
The Vakola Nala(Mithi) #BKC garbage & mosquito situation is unbearable! We residents face huge problems - affects health /quality of life.
@MCGM_BMC @mybmcWardHE
please help 🙏🏼 community! #MosquitoMenace #VakolaNala #Mithi Bmc complaint #0722895615
@Dev_Fadnavis @AUThackeray @mybmc @mybmcWardHE @swachhbharat Citizen health is in danger by NO action on cleanliness in #SmartCities area of #bkc It only takes WILL to deliver promises. Pl act now🙏
The Vakola Nala(Mithi) #BKC garbage & mosquito situation is unbearable! We residents face huge problems - affects health /quality of life. @MCGM_BMC, @mybmcWardHE please help 🙏🏼 community! #MosquitoMenace #VakolaNala #KanakiaParis #Mithi Bmc complaint #0722895615
The whole area of Vakola nala near Kanakia paris is a garbage dump filled with flies. @mieknathshinde sir, please ask @mybmcWardHE @mybmc to take concrete steps
#bkc #mumbai #bmc #mosquitoes
One more of @jackfarley96 gems, something particularly close to my heart. The title says it all…
As China falls, India rises.
Out now - my interview with Andrei Stetsenko, partner at Farley Capital, on what he's learned investing in India (w/ my Dad) for over a decade:
- India's banking system (no ZIRP)
- Adani allegations (Farley Capital never invested in Adani, for the record) & corporate governance in India
- Why Andrei thinks India has the potential to displace U.S./China as largest economy in the world this century
- India's vast number of publicly-traded stocks (more than on NYSE & Nasdaq combined) offers the chance to find high-growth, high-quality businesses at attractive valuations
- We also discuss China's issues, the most common investor mistake, and the payments & airlines industries, which Andrei is very familiar with.
I'm very proud of what Andrei and my Dad have accomplished, and I hope you enjoy this very special interview🔥
In the Uk, trying to use a #LEBARA sim, frustrating experience. Chat just keeps cutting off in 20 min- (3times), the top up of 10GBP giving nothing back. And every link is only about buying more. NOT recommended.