HAKAM Capital
We Develop Thriving, High Impact & Dynamic Companies
Leading experts in financial instruments
Our private assets
Smaller buy-outs
Infrastructure
Private Debt
Skills Expertise
HAKAM’s adept team of financial experts brings the know-how of a gamut of industry verticals, that puts us in the forefront of being the Capital Management Company of Choice.
Local Presence
HAKAM has its presence deep-rooted in North America. We comprehend the cross- cultural aspect, and have a rich understanding of the local conditions.
Independence
HAKAM was incorporated in the year 1998 and since inception, the ownership of HAKAM Capital has always stood in entirety with our sole partners. We are a family-owned entity operating independently, sans any tie-up with big financial conglomerates and external shareholders.
investment
HAKAM Capital is proactively looking out for investment opportunities in small and mid-sized companies and larger organizations too.
Size & Stage
- Investment opportunity per transaction ranges from $5 million to $50 million
- Revenue or bookings adds up to $5 million - 200 million
- Legacy of investing in lucrative businesses
- Leading institutional capital
Investment Types
- Large and governed transactions
- Recapitalization of small-sized companies
- Growth Equity
- Structured Equity
- Joint Investment
Business Models
- Recurring revenue model
- Robust gross margins and progessive economic unit
- Excess levels of cash of conversions
- Conducive Investment feature
- Long-term sustainable growth
Industries
- Enterprise Software Vertical
- Communications Infrastructure
- Multi-sector healthcare
- Business Services
- ITeS and IT sector
OUR VITAL PRINCIPLES
HAKAM is an organization, deep-rooted in its principles. These principles speak about our ethical functioning, integrated work-force and work-culture. Our values and principles have been at the cornerstone of our business. They form the foundation of our business and we are proud to possess such great convictions at the professional and personal front.
A Fair Competitive Price
Our fair deals boast of the best market price, which forms the basis for a profitable business, benefits of which we seek along with other shareholders.
Proven Closing Capabilities
The proven track record depicts that HAKAM is resourceful and competent enough to strike a deal. For over 4 decades, HAKAM’s principal partners have been investing in various sectors.
Ability to Provide a Timely Response
HAKAM’s analysts offer quick and timely responses on prospective deals that are to be approved for investments. The analysts work in conjunction throughout the entire evaluation process of investment.
Equity Participation for Management
The equity-holding pattern at HAKAM, warmly accepts a significant equity ownership by its management partners. Additionally, an incentive-based compensation plan allows the management to earn additional equity ownership.
Autonomous Operating Philosophy
HAKAM’s Principal partners are active participants of the Board of Directors. On the other hand, the management partners at HAKAM manage the all-day operations of the portfolio companies.
Strategic and Financial Advisory Support
HAKAM offers an array of expertise to its portfolio companies mainly in sectors such as hiring and recruiting the senior management team, acquisitions, mergers and joint ventures, strategic planning, building start-ups, financing and strategic planning.Our process
Our processes are aligned with thorough research, and focused on proprietary businesses. Additionally, HAKAM Capital believes in being a private equity investor in the public markets.
Portfolio Managers and Analysts
Objective: We collate relevant information that enables us to seek risk premiums.- Our team of Analysts mainly act as a repository of information provider for the portfolio managers
- The analysts at HAKAM Capital are mainly generalists focusing on specific verticals or sectors
- Our analysts do not issue target price or recommendations
- We firmly believe that open communication and continuous liaising between internal and external stakeholders is the key to success.
Idea Generation
Goal: Identify companies where market perception may be different from realityIdea Sources
- Conversations with company management teams
- Discovery while doing research on other companies within the coverage universe
- Canvassing the professional relationships of the investment team
- Travel, company visits, and conferences
- Engagement with colleagues and resources on the sell-side
- Sourcing ideas is a responsibility of both the portfolio managers and analysts
Common Characteristics of Portfolio Companies
- Poised to benefit from recent industry consolidation
- Exhibit pricing power
- Strong brand awareness
- Undervalued earnings prospects
- High barriers to entry
Conviction through Analysis
Goal: Identify a company with unrecognized growth prospects and/or misunderstood value- Develop an understanding of key investment merits by visiting with management, customers, vendors, competitors, and various industry sources
- Each company is evaluated independently
- Value a company’s segments on a standalone basis and compare to peer valuations
- Value and predict current and future cash flow using discounted cash flow analysis and modeling
- Appraisals of land, comparisons of like real estate, or value of operating assets in the event of a fire sale
- Develop a thesis on the cost to recreate the business
- Account for future earnings power
- Understand the market’s perception through study of sell-side research and the “short” argument
- Identify a catalyst that will likely unlock hidden or intrinsic value
- Gross margin expansion
- Expansion of points of sale distribution
- Acquisition synergies
- Develop a theoretical upside and downside and weigh risk/reward
Buy and Sell Decisions
Goal: Avoid group think, make timely decisions, and constantly own companies with attractive upside potential- Constant evaluation of the upside potential relative to downside risk
- Weightings based on level of conviction, beta, potential downside protection, and catalyst events
- Sell when the risk/reward proposition is no longer attractive
- May opportunistically reduce position size when the stock price makes a quick run
- Use cash opportunistically and add to names in which we have a continued conviction
- Manager Autonomy
- Each manager has autonomy to buy or sell at any time
- Manager is encouraged to act when they feel a conviction to buy or sell
- Manager is held accountable for the performance of their names in the portfolio
Portfolio Construction
Goal: Take advantage of periods of inefficiency within a sector or the asset class- Concentrate the number of holdings in the portfolio during a market pull back
- Concentrate the number of holdings in the portfolio within a certain sector during a sector pull back
- Attempt to spread out risk during frothier markets by adding to the number of holdings
- Entirely focused on security selection, indifferent to benchmark sector allocations
- Will largely stay close to fully invested and unlikely to make market calls by raising cash