Our first foray into India was an absolute unmitigated disaster. We poured some $360 million of capital into eight deals, five of which became write-offs, and only one of which returned the original investment. So in a few short years, we lost over a quarter of a billion dollars. That was huge: in this industry, you don’t get a second chance.

I joined BPEA in 2008 which later combined with EQT in 2022. Becoming a part of the thoughtful, talented young team of Jimmy Mahtani, Hari Gopalakrishnan, and Ashish Agarwal. I didn’t know it yet, but I was about to find out firsthand how this company built its reputation of resilience and patience – and not the easy way.

We were trying to carve out a foothold in India, and saying it was turbulent is putting it lightly. The day before my wedding in Greece, a local constable wrote to me and asked me to come in for an interrogation. Local papers published stories about us. We were blackmailed, we lost millions, and at one point, I couldn’t safely return to India for a year and a half.

Naturally, I wondered if we were the right team for the job. We weren’t the most experienced in the company by any means – but we were thoughtful. So instead of booking flights, we tore up our strategy and went back to basics. Our new rules: we’d only invest in certain sectors, look for firms with experienced managers and leaders, and we’d need control of each company for the duration of our work.

The payoff wasn’t quick. In fact, we waited four years before making our next investment. In private equity, that’s a lifetime. Our goal was clear: we were focused on long-term change, not short-term results. The problem was staying motivated in that timeframe. Well, that’s where our culture came in. Perhaps contrary to what you might expect from the private equity space, the firm fosters a sense of shared incentives and collective belonging. We were afforded patience and trust. It probably helped that the business was doing well elsewhere, too.

And so, they changed the strategy. They went back to basics and completely reevaluated their thinking in India. We decided: we’re going to invest only in certain sectors. We will only invest in scale companies with experienced leaders and only in situations where we control the company.”

We waited for more than three years, between 2009 and 2013, before making another significant and different investment. That much time in private equity? It’s like an eternity. But the team was focused on the long-term, not short-term gains and losses.

How do you keep a large team motivated? That’s where culture comes in. That’s what forges a sense of belonging, where incentives are shared. The team was resilient and the firm was doing well elsewhere. That’s very different from a culture where you simply eat what you kill — that doesn’t create the kind of team focus and wisdom required to be an investor.

Patience paid off. Starting in 2013, the team began to invest significantly in India and we are satisfied with the performance of our India programme. The key success story of this renewed strategy is their investment growth in Indian IT services. The most interesting thing is: it’s the exact same team, they took on this new opportunity with both hands.

Ultimately this is a story of focusing on what’s true versus what’s emotion. It’s a story about believing in your people and your values, of being willing to be patient with strategic intent, and to do something different from everyone else. That’s what creates institutional capability. That’s what creates loyalty. That’s what creates success.

The biggest source of pride for me was not the money, though – although that sure alleviated our anxieties. I was proud that despite our challenges, my team trusted our instincts and intelligence, doubting our strategy instead of ourselves. And for the industry, the takeaway is clear: patience can pay dividends.