The reflection of the past: The notes from the Uncertainty
Today in Pune, it's quiet. A little too quiet.
My life has been centered on laying the foundation and organizing every aspect of the fund for the past few weeks. The goal is to build a mechanism that will allow us to approach significant investors with a defined framework to raise finance. Because, without a license, we are unable to approach new investors or demonstrate progress to our existing investment base. I'm looking at my email inbox. Refresh. Nothing happens.
We are in the final stages of obtaining our AKIN Capital Fund license. It's a Category 3 Alternate investment fund (hedge fund), a worldwide multi-strategy fund that intends to invest in the United States, the United Kingdom, the Eurozone, and China. The fund seeks to deliver consistent risk-adjusted returns.
That's the short formal definition; perhaps it's the "elevator pitch."My name is Akshay. I am Founder and CIO of AKIN Capital Fund.
But for the time being, AKIN Capital Fund is nothing more than a mountain of papers and a test of patience and sanity.
The license has been delayed for more than a month. The entire procedure is two or three steps behind. One can say, "It just takes a little patience." But it needed all to maintain this composure. When you are 29 years old, fresh out of IIM Lucknow, and you have a normal career path, but instead, I bet on my entire career as a statistician. In the end, patience feels heavy.
Looking back, I realize that this did not start with the paperwork.
According to the official timeline, this expedition started in May 2024. However, the real script started to compose itself in 2013.
According to the official timeline, this expedition started in May 2024. However, the real script started to compose itself in 2013.
Back then, there was no formal plan. There is no roadmap. It was only a kid's desire to work in the market, with a natural predilection for becoming a portfolio manager. The conventional wisdom, the script that everyone else follows, suggests you should wait. This is the right route, but the industry is shaped by visionaries and risk takers.
You secure a job. You wait till you have 5-10 years of experience. Perhaps till one's hair becomes grey. You wait for tenure. You wait till it's safe and you've established a network of investors before raising funds.
But I had a peek around the industry. I observed seasoned managers finding it difficult to outperform the market. Despite their lack of experience, I seen new, dedicated, and hungry managers rise to the top.
The idea hit me like a narrative twist in the second act: "The market doesn't value your experience. It values your insights."
However, the insights can be simply gained by experience. So, it's unclear who has more; rather, the fund manager who steers the funds and invests according to market conditions.
It was not about experience; it was about the unwavering will to learn, the ability to learn, the ability to gain investors' trust through extreme transparency, and the courage to execute.
In addition, my hair became grey when I was younger. Perhaps my body was aware of this industry limitation and began to work on my appearance. Just kidding. I do not have hair.
The Decision
I did the unthinkable. I made the decision to start the adventure with a leap of faith.
I wanted to give my loved ones a life they would enjoy. So I chose one so that if something went wrong, they wouldn't be pleased. So, my goal is to make this a reality and achieve my dream. I confidently stepped into the abyss.
If we consider the stakes. Fundraising without a network or a formal investor might range from 5 to 10%. The success likelihood of scaling and recruiting fresh capital among newly created funds is approximately 6%.
So, the probabilities are around 6% of 10%, or 0.6%. In actuality, it may be lower, but let's decide on 0.6%.
The odds are stacked against the house. Established players have the advantage of capital commitment, while I have nothing to lose and everything to prove.
The journey
Weeks became months. Months transformed into patterns.
Patterns evolved into an institutional system with discipline.
Patterns evolved into an institutional system with discipline.
I started this blog not to provide you with a synopsis of a behind-the-scenes story. This is not a "How I Built This" retrospective from the confines of a yacht. This is a record of the upheaval. This is a record of labor completed in silence.
Officially, the journey started in May 2024. Before I tell you where we're going next month, I should explain how we got here.
So, I'll try to document the voyage every 2-3 weeks, reflecting on each stage of the story.
Welcome to the 0.6% club.