Bengaluru,
October 2026.
Investors
should resist the fear of missing out on the next breakthrough company because
attractive opportunities will continue to emerge, Nilesh Shah, Managing Director
of Kotak Asset Management Company, said at Kotak Private’s Take and Counter
Take (TACT). Speaking at the invitation-only thought leadership platform on the
theme, “Is the Future of Wealth Creation Shifting from Public Markets to
Private Markets?”, Shah cautioned investors against allowing urgency or market
narratives to override discipline. “You should never ever chase any investment
because the sell side is saying this is once in a lifetime opportunity,” he
said, adding that missing one opportunity should not be treated as an
irreversible loss.
His
argument challenges the FOMO that frequently surrounds private-market deals,
initial public offerings and emerging investment themes. Rather than treating
each new opportunity as the last chance to participate in a wealth-creation
cycle, Shah suggested investors should remain patient and selective. In his
analogy, if one train leaves the platform, another will arrive. The underlying
message was clear: the cost of entering an unsuitable investment can be greater
than the cost of letting a promising one pass.
‘Distinction
Between Startups And Large Companies Will Blur’
Investment
discipline may become particularly relevant as the traditional dividing line
between startups and established companies begins to disappear. Shah described
how some listed companies are creating startup-style units within their
organisations, giving dedicated teams distinct cultures, working models and
mandates to pursue innovation without being constrained by the larger
organisation’s bureaucracy.
Citing
the example of an Indian manufacturer seeking to develop a specialised component
made by only three companies globally, Shah said the company had established a
separate research and development unit with “their own culture, their own
working hours, no connection to the headquarter.” The team had been given a
clear mandate: “This is the money, this is the technology. Go and get it.”
The
implications could be significant for investors searching for the next
generation of growth businesses. Innovation may no longer be confined to
privately funded startups. Established companies with capital, distribution and
operating experience could build entrepreneurial ventures internally while
retaining the strengths of a listed enterprise. “My feeling is that this
distinction where startups will do innovation and large companies will be dinosaur,
hopefully will start getting blurred,” Shah said.
‘India
Had Private Equity Before It Had PE Funds’
Shah
also challenged the conventional view that private equity is a relatively
recent or imported investment model. India, he argued, has long had an informal
private-equity culture built around families, relationships and business
communities. “Relative giving seed money to a relative to start a business is
also private equity,” he said.
While
such capital has historically been deployed through personal networks, Shah
sees scope for it to become more structured and professionally managed. “What
was part of family is now becoming part of community on a professional basis,”
he said. “If this model is successful, I’m sure other communities will copy.”
Together,
these trends reveal how wealth creation has evolved in India. Opportunities may
increasingly emerge not only from conventional startups or public-market
incumbents, but from entrepreneurial units within listed companies and
professionally managed pools of community capital. For investors, Shah advises
discipline: opportunities will continue to arise, but not every opportunity
needs to be chased.