Bhanu Choudhrie on the Pandemic and the Private Equity Industry

By Ernest Hamilton

Oct 02, 2020 11:58 AM EDT

Bhanu Choudhrie on the Pandemic and the Private Equity Industry (Image provided by Bhanu Choudhrie) (Credit: Getty Image)

With volatility in the markets for the foreseeable future as entire industries adapt to a 'new normal', some investors have found their niche in a changing world, while others have opted to keep their powder dry. Bhanu Choudhrie, the founder of C&C Alpha Group, recently shared his insight based on both the state of the private equity industry and how businesses are likely to be affected. 

C&C Alpha Group

Choudhrie invests in several core markets, including aviation, hospitality, and health care. His team provides crucial advice on how companies can develop their positions in the market. C&C Alpha Group will show partners how to adapt to customer needs, to create more value from their existing models and to build relationships with new strategic partners

How does Bhanu Choudhrie and C&C Alpha Group invest?

Bhanu Choudhrie has a measured approach when evaluating investment opportunities. This is because C&C Alpha Group makes much more than just a financial commitment when bringing on a new firm. From project developers to analysts to consultants, it takes a lot of resources to invest in an organization successfully. 

He's found success by starting small and then increasing in increments, his team has the chance to nurture successful partnerships. For this to happen, there needs to trust and time and effort put in on both sides.  Whether it's an individual, an early stage business, or larger corporate, there are a few basic questions that C&C Alpha Group needs to answer before making bigger decisions. One of the most important evaluation methods is to go beyond the core competencies.

In other words, it's not asking just about the financials, but about the specifics of what makes a company special. What does it do better than its competitors and why is that important to the market? It's consistently digging into the layers of this answer that gives the firm the knowledge to make better predictions about his business and the larger industry. 

How did Choudhrie start the firm?

Choudhrie is the first to admit that he's more cautious than he used to be. In 2003, his first major investment was Air Deccan, a tiny airline carrier with very few passengers. Within half a decade, Air Deccan was serving the travel needs of seven million people a year. 

This kind of initial investment taught him a lot about which ventures were right for C&C Alpha Group and which he should turn down. Today, C&C Alpha Group might reject 98% of investment opportunities, but in being this selective, the projects that are picked up get the attention they deserve. 

What does the pandemic mean for Choudhrie's industries?

The pandemic means that the needs of different markets will change, and it's up to investors to see how their investment strategies fit with these new demands.

One of Choudhrie's successful ventures, Alpha Aviation Group is a great example of this. This company was created when C&C Alpha Group noticed the demand for travel to countries in or around the Western Pacific Ocean was increasing whilst the number of commercial pilots available wasn't sufficient to fulfill that demand.

Alpha Aviation Group has trained close to 2,000 pilots from around the world and opened six simulators in the Philippines. With the travel industry so heavily impacted by the pandemic, more carriers than ever before are likely to consider decentralizing their training programs. This is an opportunity for Alpha Aviation Group to start adapting to this role by offering cost-effective services that won't sacrifice passenger safety. 

Bhanu Choudhrie also sees Alpha Utilities as a major opportunity, a desalination company in the UAE. The need for desalinated water in these regions is real, and now will be a good time to capitalize on the proven water technology the firm has already developed. 

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