top of page

Decoding AltG's Investment Criteria for Allocating a Billion Dollars In India


Photo of Capital Allocation in India

In the fast-paced investing world, identifying lucrative opportunities requires keen insights, meticulous research, and a bold vision for the future. AltG, renowned for its innovative investment strategies, through its APEXX Formula - a powerful framework designed to pinpoint industries, companies, and opportunities with the potential to deliver exceptional returns. By adhering to AltG's Investment Criteria, AltG identifies unique investment ideas that transcend conventional thinking and set the stage for substantial growth. Let's delve into the key components of the APEXX Formula and understand the characteristics AltG looks for in its investments.


1. Industry with High Growth and High Margin:

AltG's first step is to focus on industries exhibiting robust growth prospects and high-profit margins through analysing over 40,000 private and publicly listed companies in India. The company's keen eye is drawn to non-obvious businesses, typically overlooked by mainstream investors, which operate in fragmented markets with few dominant players. Such businesses, while maintaining their margins, are also resistant to disruption from emerging technologies or competing products. AltG recognises the potential in established yet seemingly mundane enterprises poised to become exceptionally profitable due to their ability to generate rapid cash flow. Stability is a key factor, providing a solid foundation for sustained growth. Industries such as industry databases, insurance broking, testing & analytics, wealth management and staffing are examples of such industries in India.

2. Inelastic Demand - Annuity Income:

AltG favours businesses with inelastic demand, where consumers' need for the products or services remains relatively constant regardless of market fluctuations. These "Consumer-Infra" businesses, representing a small portion of consumer spending, are characterised by competitive advantages, acting as the backbone of essential industries. With a focus on businesses that offer annuity-like income streams, AltG identifies opportunities akin to the "picks and shovels" during a gold rush, ensuring consistent returns over time.

3. Underestimation of Potential:

The APEXX Formula thrives on contrarian views that challenge conventional perceptions. AltG seeks industries that appear small or insignificant today but possess the latent potential to scale exponentially in the future. By identifying massively underestimated Total Addressable Markets (TAM) and potential growth, AltG gains a variant perception of value, TAM, margin, and revenue, positioning itself at a strategic advantage to capture significant returns.

4. Overlooked by Big Players:

AltG scours emerging sectors that major players in the market might overlook due to their relatively small size. These neglected opportunities often present untapped potential, offering a unique entry point for AltG to participate in the growth trajectory through low-risk and high-returns.


5. Entry into Growth:

For successful investment execution, AltG identifies paths that enable it to participate in the growth of promising industries. Whether as an investor or by aligning with a suitable investor base, AltG ensures it has a stake in the success of its chosen ventures.

6. Favourable Government Regulations:

Understanding the impact of governmental policies on industries is essential. AltG seeks opportunities where favourable regulatory environments create conducive growth and stability conditions, reducing investors' uncertainties.


7. Real Moat - Unreplicable Competitive Advantage:

The APEXX Formula places significant emphasis on identifying businesses with robust competitive advantages. These advantages, whether through economies of scale, proprietary resources, or a unique supply of assets, create barriers to entry that shield the company from potential competitors, securing long-term profitability.

8. Tipping Point Trends:

Recognising industry trends at their tipping points is crucial for AltG's investment success. Analysing social, economic, and political changes enables AltG to identify emerging sectors or disruptors that stand to benefit from transformative shifts in consumer behaviour and market dynamics.

9. Underestimated TAM for Financialization:

AltG seeks industries with underestimated TAM to explore financialisation opportunities. Identifying the asset classes that can be effectively financialised allows AltG to leverage its investment expertise and amplify returns.


10. Derivative Ideas in High-Growth, High-Margin Industries:

Finally, AltG uncovers derivative plays within industries exhibiting high growth and high margins. By identifying third, fourth, and nth derivative ideas, AltG capitalises on diverse investment opportunities that arise from the main industry's expansion. For example if the hospital industry will grow in India, what derivative industries around the hospital industry will also grow? Industries serving hospitals such as staffing, trade magazines, and equipment will also see exceptional returns. The APEXX formula focuses on the best risk adjusted return from the space.

bottom of page