First Water Capital Advisors LLP
First Water Capital Advisors LLP is an emerging Portfolio Management Services (PMS) and alternative investment manager in India, known for its disciplined, value-oriented approach to equity investing. Established in 2018 and headquartered in Mumbai, the firm has steadily built a reputation among sophisticated investors seeking long-term wealth creation through concentrated, high-conviction portfolios.
The PMS strategy of First Water Capital Advisors is rooted in a long-only investment philosophy, focusing exclusively on publicly listed Indian companies. Unlike diversified, index-hugging portfolios, the firm follows a concentrated portfolio approach, where capital is allocated to a limited number of carefully selected businesses. This allows the fund manager to maintain deep research coverage and conviction in each investment, aiming to generate superior alpha over time.
At the core of its investment philosophy is the belief that intrinsic value ultimately drives market prices. Instead of reacting to short-term market volatility, First Water emphasizes identifying fundamentally strong companies that are trading below their true worth. The firm typically maintains a long-term investment horizon of 5–7 years, allowing its investment thesis to fully play out and benefit from compounding.
The PMS is led by Ricky Kirpalani, Founder and Chief Investment Adviser, who brings over three decades of investment experience. His track record includes managing capital with a reported CAGR exceeding 30% over a 15-year period prior to institutionalizing the strategy under First Water Capital. His investment style blends rigorous fundamental analysis with a macroeconomic perspective, enabling the firm to identify opportunities across sectors and economic cycles.
Sector-wise, the portfolio is diversified across key areas such as manufacturing, consumer, energy, utilities, and industrials, while still maintaining a focused allocation strategy. The firm actively evaluates the risk-reward dynamics of each holding and reallocates capital when better opportunities arise, ensuring optimal portfolio efficiency.
Another distinguishing feature of First Water Capital Advisors PMS is its “skin in the game” approach, where the promoters co-invest alongside clients. This alignment of interest enhances investor confidence, as the fund manager’s capital is exposed to the same risks and rewards as that of investors.
The firm operates under a Category III Alternative Investment Fund (AIF) structure, which allows flexibility in strategy execution while adhering to regulatory oversight. Its open-ended structure provides investors with liquidity options, subject to defined exit loads and notice periods.
In conclusion, First Water Capital Advisors PMS is best suited for high-net-worth individuals (HNIs) and long-term investors who are comfortable with concentrated portfolios and short-term volatility in pursuit of superior long-term returns. With a strong value-investing foundation, experienced leadership, and a disciplined investment process, the firm positions itself as a compelling option in India’s evolving PMS landscape.
