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
Thereโs 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
๐๐ โ ๐๐ฎ๐๐ฎ ๐๐ฒ๐ป๐๐ฒ๐ฟ๐ โ ๐ฃ๐ฟ๐ถ๐๐ฎ๐๐ฒ ๐๐ฟ๐ฒ๐ฑ๐ถ๐ โ ๐๐ป๐๐๐ฟ๐ฎ๐ป๐ฐ๐ฒ ๐๐ฎ๐ฝ๐ถ๐๐ฎ๐น
6/8
Because insurance gives them something extraordinarily valuable:
๐๐ผ๐ป๐ด-๐ฑ๐๐ฟ๐ฎ๐๐ถ๐ผ๐ป ๐น๐ถ๐ฎ๐ฏ๐ถ๐น๐ถ๐๐ถ๐ฒ๐.
Those can be matched against long-duration assets generating contractual cash flows.
Private credit. Infrastructure. Andโฆ
๐๐ฎ๐๐ฎ ๐ฐ๐ฒ๐ป๐๐ฒ๐ฟ๐.
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
๐๐ป๐๐๐ฟ๐ฎ๐ป๐ฐ๐ฒ ๐ณ๐น๐ผ๐ฎ๐.
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
๐ช๐ต๐ฒ๐ป ๐๐ต๐ฒ ๐ผ๐ฝ๐ฝ๐ผ๐ฟ๐๐๐ป๐ถ๐๐ ๐ณ๐ถ๐ป๐ฎ๐น๐น๐ ๐ฎ๐ฟ๐ฟ๐ถ๐๐ฒ๐, ๐๐ต๐ฒ๐ฟ๐ฒ ๐ฑ๐ผ๐ฒ๐ ๐๐ต๐ฒ ๐บ๐ผ๐ป๐ฒ๐ ๐ฐ๐ผ๐บ๐ฒ ๐ณ๐ฟ๐ผ๐บ?
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.
Buffettโs famous advice is simple:
Wait patiently. Donโt chase markets. When great assets become available at great prices, buy aggressively.
Thereโs just one problem with that adviceโฆ
1/8
๐ช๐ต๐ผ ๐ถ๐ ๐ฎ๐ฐ๐๐๐ฎ๐น๐น๐ ๐ณ๐๐ป๐ฑ๐ถ๐ป๐ด ๐๐ต๐ฒ ๐๐ ๐ฏ๐ผ๐ผ๐บ?
AI needs GPUs. GPUs need data centers. Data centers need land, power, cooling, fibre and staggering amounts of capital.
That money is coming from ๐ฝ๐ฟ๐ถ๐๐ฎ๐๐ฒ ๐บ๐ฎ๐ฟ๐ธ๐ฒ๐๐.
Where are they getting it? ๐งต
Had a bizarre experience with @tradingview support today.
India market data is delayed by ~20 minutes- canโt even raise a support ticket unless you first navigate a clunky, opaque AI chat assistant.
Ironically, AI hurting TradingViewโs reputation than improving experience.
โฆ@OLX_Indiaโฉ 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 โ not some idiotic AI message that exposes my info.
Fix this. Itโs 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 itโs been a dud. Bought at โน70.2, now it's at โน63.2. Iโm down -10% capital, -4% net- this is when the entire market up ~20%, clear miss. Dumping it. #IRBInvIT #CapitalTrap #MarketPerformance #irbinvit
Itโs 2024 and podcasts still canโt 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 ๐๐ผ 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 now๐
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 ๐๐ผ 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 allโฆ
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 interview๐ฅ
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.