Dhandho Holdings - Special Purpose Vehicle

[Parsad]

I spoke to Mohnish yesterday about this because I'm getting a number of such queries.  There are a few people (between family and friends) who are pooling their assets together into one entity and investing in Dhandho.  Mohnish is ok with that, but would be resistant to anyone setting up a for-profit fund that profits on the back of Dhandho Holdings, since it defeats the purpose of the low, equitable compensation structure in Dhandho. 

 

As a director for Dakshana Canada, I thought about setting up a non-profit fund, with a small management fee (say 0.5%) after operating costs going to Mohnish’s foundation, Dakshana.  But unfortunately, I think it would stretch me a bit thin with all of my businesses and activities.

 

Let me know how many people would seriously consider investing in such a non-profit vehicle giving them exposure to Dhandho, and I will reconsider my decision if the number is large enough and would mean at least $25-30K a year going to Dakshana…it would mean $5M in capital would have to be raised!  If not, my time is better spent setting up an annual event where I could raise as much for Dakshana.  Cheers!

 

[wisdom]

What would be the minimum Investment required? I would be interested.

 

Thanks.

[oddballstocks]

I'm very confused on this:

 

1) Isn't this going to be a public company?  If so why does someone need to invest in a fund to invest in the company?

 

2) If it's public is there any way he can stop someone from setting up a Dhandho fund that scrapes a management fee and only invests in Dhandho?

[indirect]

I have somebody with 200k who is looking to pool.

[Parsad]

I spoke to Mohnish yesterday about this because I'm getting a number of such queries.  There are a few people (between family and friends) who are pooling their assets together into one entity and investing in Dhandho.  Mohnish is ok with that, but would be resistant to anyone setting up a for-profit fund that profits on the back of Dhandho Holdings, since it defeats the purpose of the low, equitable compensation structure in Dhandho. 

 

As a director for Dakshana Canada, I thought about setting up a non-profit fund, with a small management fee (say 0.5%) after operating costs going to Mohnish’s foundation, Dakshana.  But unfortunately, I think it would stretch me a bit thin with all of my businesses and activities.

 

Let me know how many people would seriously consider investing in such a non-profit vehicle giving them exposure to Dhandho, and I will reconsider my decision if the number is large enough and would mean at least $25-30K a year going to Dakshana…it would mean $5M in capital would have to be raised!  If not, my time is better spent setting up an annual event where I could raise as much for Dakshana.  Cheers!

 

 

This is an interesting concept - though it is not clear how this will work. Isn't the money put into Dhandho permanent capital? Is the plan to sell Dhandho shares after IPO to pay for Dakshana?

 

cheers!

 

No, the GP would essentially be the non-profit partner.  The partnership would own the shares.  The shares would not have to be sold off immediately, but a certain amount every couple of year or say five years of the GP's capital account would be sold/transferred in kind to Dakshana.

 

What would be the minimum Investment required? I would be interested.

 

Thanks.

 

$100K

 

I'm very confused on this:

 

1) Isn't this going to be a public company?  If so why does someone need to invest in a fund to invest in the company?

 

2) If it's public is there any way he can stop someone from setting up a Dhandho fund that scrapes a management fee and only invests in Dhandho?

 

1)  A lot of people want to get in at the financing, because they believe the stock will trade above book after the IPO.

 

2)  Probably not, but this is for the financing, which he has control of.

 

Cheers!

[Parsad]

Actually, Mohnish thinks Dakshana and Dhandho should be separate, so I won't be considering the non-profit SPV.  Sorry!  Cheers!