Ramnath vs Shah: Public or Private Markets in a Downturn? — SkimNews
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- Renuka Ramnath, Founder, MD and CEO of Multiples Alternate Asset Management, argued private markets are a safe haven during downturns because investors retain operational control through board seats and affirmative clauses that dictate cash usage, acceleration, or deferral of initiatives.
- Nilesh Shah, MD of Kotak Mahindra AMC, countered that the immediate aftermath of an asset bubble is when public markets offer unparalleled wealth creation, noting that promoters won't sell their companies cheap while public investors liquidate portfolios at fire-sale prices.
- Ramnath recommended investors at 100% public equity gradually scale up alternate asset exposure over a five to seven-year horizon, eventually allocating up to 30% of their equity portfolio into private markets.
- Both managers agreed investors should stop viewing public and private markets as an 'either / or' proposition, stressing the importance of diversification across asset classes.
- Oisharya Das, CEO of Kotak Private Banking, said the growth of private markets is giving India's wealth creators a broader opportunity set while making portfolio-allocation decisions more nuanced.
- Ramnath noted that outsized returns in private equity require intense crisis management, with true value generation occurring when managers shield companies from catastrophic internal and external events.
Why it matters: For India's growing base of wealthy investors, the panel offered a concrete allocation framework — Ramnath's 30% private market target over a 5-7 year horizon gives public-equity-heavy investors a specific glide path. The debate also crystallized a behavioral asymmetry: promoters hold through crashes while public investors liquidate at lows, meaning timing and asset class choice materially affect crisis-period returns.
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