What happened to Deccan Value Investors?
Anyone know why the two endowments redeemed? Does this fund have a future after the SEC order? Seemed to have been growing AUM well before 2022.
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Long story short, Vinit the founder of Deccan met with his old friend Girish Bhakoo back in 2018, during their talk Girish, who was a junior partner I think at Ruane Cuniff said that he was going to launch a new fund with $125M all of which is his own money. Vinit's new worth at the time was $30M, dude was pissed and envious that while he ran his own fund he didn't make as much as his employed friend.
Vinit then basically started to claim his LP's stake (private investments not public) while giving them a smaller piece of the pie which is illegal. What is funny is that his fund was already doing well! He was supposed to make $40M that year but made $50M by doing this, also bought share in a private jet. He ruined his career and financial life for a lumpsum $10M when he could have made multiples of that had he been patient. Then he had a falling out with his CFO who reported this to the SEC.
What is worse is the dude then held LPs hostage, if they wanted to leave, he would sell their stakes for a discount which would make them lose a lot of money. All of this piled on and endowments & SEC had enough of this guy. Which is why they finally pulled out, probably waited to recover their cost and breakeven or just for the SEC to take action and see to it that they are not harmed.
Would you still work there as an Analyst? Lol... And thoughts on Girish's new fund TenCore?
At Deccan? I wouldn’t. If you work there even after SEC charged the dude, it looks like you too have some ethics issues. As for Girish, he’s innocent, he didn’t know that him sharing his story with his own friend would cause him to do all of this.. as for Tencore, they’ve seen AUM compression, holdings look pretty bland. But, if interest rates were to come down, the fund would do better. Most of RC&G guys are glorified VC investors, they’ve lost their touch for the public markets, but should do well in ZIRPy environments. If you get an offer from there it’s worth taking, don’t forget that Girish probably has very deep network of good founders, managers and investors which will come in handy down the road.
I still don't understand how Vinit wasn't worth more after running Decan for 15+ years
This article provides a good summary:
https://airmail.news/issues/2022-8-13/poor-little-rich-boy
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