<iframe src="https://www.googletagmanager.com/ns.html?id=GTM-PHTV9K7" height="0" width="0" style="display:none;visibility:hidden">
Loading
Skip to Main Content
Product cover image for Pythagoras Global: Emerging Market Funds and the Conundrum of Family Ownership

Pythagoras Global: Emerging Market Funds and the Conundrum of Family Ownership

Avinash Ghalke, Ram Kumar Kakani, Harikrishnan Varma

Product #:W25643
Supplier:Ivey
Discipline:Finance, Strategy
Setting:India, United Kingdom, 2016
Details:Case (PDF) • 15 pages • 2022-03-21

Subjects:

Corporate strategyCorporate governanceFamily businessesBusiness managementBusiness structuresFinance and investingStrategy

Industries:

Financial service sector

Geography:

AsiaEuropeIndiaUnited Kingdom
Your Price:$9.71

Purchase this material with a free Educator Account and enjoy more benefits:

  • Free Educator Copy
  • Free Teaching Notes
  • Build your coursepack
  • Discounted academic price

In 2016, Pythagoras Global Fund (Pythagoras), based in the United Kingdom, decided to launch a fund focused on emerging markets, especially those in Brazil, Russia, India, and China (BRIC countries). Pythagoras’s fund manager favoured investing in family-owned businesses, but the investment opportunities in India used ownership structures different than those used in developed markets. The structures in Indian groups altered the cash flow and effective ownership rights in the subsidiary firms, which had ramifications for stakeholders and raised associated governance issues. The fund manager needed to decide which firm to choose by assessing the investment opportunities and evaluating the corporate governance of the companies.

Learning Objectives

This case is useful for undergraduate- and graduate-level courses on corporate strategy, international management, or corporate governance, or for executive training or seminars for mid- or senior-level managers involved in business or financial restructuring or corporate strategy. After working through the case and assignment questions, students will be able to do the following:
  • Identify the factors for choosing investment destinations.
  • Describe the control structures used in corporations, the issues these structures raise, and how the control mechanisms affect the key owners and stakeholders.
  • Understand the complexities and complications introduced by hierarchies and legacies in family-managed businesses.
  • Identify and analyze the factors that need to be considered when investing in or lending to family-owned businesses.
Loading
Case Study: Pythagoras Global: Emerging Market Funds and the Conundrum of Family Ownership (English version) | Ivey Publishing