6 - Apprenticeship – the magic sauce in Private Equity - Amit Chandra’s journey from Investment Banking to Private Equity and Social Impact.

Amit talks about how his parents have influenced his attitudes towards giving and his parenting style. He talks about how he and his siblings were encouraged to be grounded and contribute with their capabilities (not just money) to help the needy. He also talks about his parenting style where he emphasizes nudging and role-modelling than prescribing and lecturing.

Amit talks about how he thought about pursuing an MBA in the US. He also goes on to talk about the considerations he had when he decided to come back to India immediately after his MBA. He also talks about how he thought about Banking as a career option picked Investment Banking as a career path (as against Trading despite his strengths in quant related topics)

Amit reflects on the common misconceptions people have when they get into Banking. Amit talks about how he made the decision to join DSP Merrill Lynch despite it being the job with the lowest pay and title. He also talks about how he leveraged his style of building deep authentic relationships with clients to grow over time. He also talks about the role of early bosses and brutal developmental feedback coupled with mentorship from Hemendra Kothari which have played a key role in his growth as a Banker.

Amit talks about how he has benefited from mentors along the way starting from Hemendra Kothari at DSP Merrill Lynch. He also goes on to talk about how mentors need not be from within the company and how clients could sometimes be great mentors. He talks about how the circle of mentors (which includes KV Kamath, Kalpana Morparia and KM Birla) has evolved organically over time than him going out in an explicit, conscious way to build a group of mentors around him.

Amit talks about how he thought about the transition from the world of Investment Banking to Private Equity. He talks about taking stock of life after reaching the heights of the Investment Banking profession and also seeking more time to devote to some of the other elements in his life such as Social Impact.

Amit talks about what it takes to build a sustainable Private Equity business over the long term. He also talks about the criticality of apprenticeship in people growing to become effective investors. He talks about three things that investors need to get right (people bets, strategy bets and timing) and how that evolves over time. He also discusses what it takes to transition to Investing as a profession and how he evolved from Investor 1.0 to Investor 2.0 during his tenure at Bain Capital.

Amit discusses how people get better at judgment calls over time. In an industry where the lead time to feedback is long, this is a significant differentiator over the long-term. He also discusses how, in order to drive disproportionate returns, it is critical to walk the tightrope between seeking all the inputs required for a decision but at the same time have the courage of conviction to stick your neck out to avoid a consensus evaluation.

Amit discusses how he thinks about hiring and creating a nurturing climate for his team to deliver performance. He also shares how he invests time with each of his colleagues and help build their capability. He also talks about how he handles exits from Bain Capital. He talks about the realities of a corporate pyramid and stresses the importance of handling the people that don’t go up the pyramid with empathy.

Amit currently operates on a 50% model where he spends 2.5 days at Bain Capital and 2.5 days on Social Impact, Boards and other matters. He talks about how he and his wife gradually started spending more and more time on the Social sector and how he structured this arrangement when the last fund was being raised.

Amit talks about how he and his wife Archana have been thoughtful about how they would spend their time and money towards Philanthropy. He talks about how they picked Water, Education and Health as three areas he would go after. He also discusses how his intervention is a blend of several activities including writing cheques towards break-out NGOs, investing in Leadership Capacity Building and Governing through the Board.

Amit discusses how he has always surprised himself over time with the goals he has set for himself on the work front and the Social Impact front. He talks about the importance of setting goals and revisiting them from time to time. He also talks about the criticality of collaborating with the right set of people who inspire you and enable you to drive impact at a large scale.