Madhu Lunawat of The Wealth Company has underlined a disciplined, research-heavy approach to equity selection, saying, ‘We have private equity style approach doing deep-dive research into companies, management teams, business DNA, and long-term sustainability,” says Lunawat. The comment frames flexi-cap investing through a lens more commonly associated with private deals, focusing on fundamental scrutiny, organisational depth and the durability of business models over time.
Private-equity lens on flexi-cap allocation
Lunawat’s formulation signals an emphasis on quality and depth over speed, aligning flexi-cap choices with the rigour of private transactions. Rather than relying on broad market cues, the stance turns attention to the substance of each enterprise: how it is built, who is running it and whether its core engines can endure. By bringing a private-equity style approach into a flexi-cap format, the method suggests that portfolio decisions are filtered through a conviction-led process that privileges enduring strengths. The focus on business DNA and leadership implies that selection is not treated as a short-term trade, but as a structured allocation rooted in the character and resilience of underlying businesses.
Deep-dive research as the central discipline
The approach highlights systematic analysis that goes beyond surface-level metrics. “Deep-dive research into companies, management teams, business DNA” points to intensive work on governance, culture and decision-making, alongside an assessment of how companies adapt. In practical terms, it places the investigative process at the centre of investing, where understanding operating drivers, incentives and execution capacity becomes decisive. Such a framework elevates due diligence to a standing principle, making it the basis for both inclusion and continued ownership. With management evaluation and organisational fabric under the microscope, the process aims to distinguish transient narratives from durable enterprise capability.
Long-term sustainability as a selection filter
By explicitly citing “long-term sustainability,” Lunawat positions durability as a primary screen for investments. This adds a horizon-oriented filter that asks whether a business model can persist through changing conditions. The suggestion is that endurance, not just momentum, shapes conviction. The idea of sustainability here extends to the coherence of strategy, the repeatability of cash generation and the reliability of stewardship. In effect, the approach treats longevity as an investable attribute, one that must be traced back to a company’s DNA and leadership. This stance can temper reactive decision-making, encouraging patience where fundamentals remain intact and prompting exit where structural weaknesses emerge.
Implications for portfolio construction and expectations
Applying a private-equity mindset to flexi-cap investing can influence how portfolios are built and maintained. It encourages concentration around researched ideas, an ongoing monitoring regime and readiness to reassess when the underlying thesis changes. The emphasis on companies, management teams and business DNA also suggests that engagement is continuous, not episodic. For investors, this can translate into a process-oriented experience where outcomes are tied to the gradual unfolding of business performance rather than frequent shifts in positioning. By grounding decisions in deep-dive research and long-term sustainability, the approach seeks to align expectations with the measured cadence of corporate progress.