Dear Partner,

Your return will vary depending on when you invested. Here are the key points I'd like to cover:

- The portfolio and performance highlights of SVN Capital's holdings.
- The impact of recent events on the portfolio.

Currently, SVN Capital owns 10 stocks, with cash accounting for 2.3% of the portfolio. 

The top holdings include:

1. **Copart Inc.**: 
   - This is a leading global manufacturer of industrial steam turbines, with a capacity of up to 100 megawatts.
   - It holds a dominant market share (#2 globally behind Siemens) in the less-than-30 MW segment.
   - Headquartered in Bengaluru, India, with clients across 80 countries.

2. **Bajaj Finance**: 
   - A specialty finance company in India, with high returns on capital and excellent reinvestment opportunities.
   - The stock price reflects its high-quality fundamentals.

3. **Dino Polska**: 
   - A Polish grocery chain, also a long-term holding in SVN Capital's portfolio.
   - The stock price has recently reversed course, reflecting renewed vigor in store growth.

4. **Triveni Turbine Limited (TTL)**: 
   - A business that can be understood, generates high returns on capital, and has great reinvestment opportunities.
   - It is run by an honest and competent management team with skin in the game.
   - The stock is available at a reasonable valuation.

TTL is an owner-operated business with significant growth and no debt on its balance sheet. 

The global steam turbine market was ~$27 billion in 2024 and is expected to reach $36 billion by 2033. 

TTL's financial performance and management team details:

- Sales and operating earnings have increased significantly since separation from its parent company.
- The management team is shaped by the Sawhney family, with Dhruv Sawhney as chairman.
- TTL funds all capex needs from internal cash flow, maintaining a balance sheet with net cash.

The information in this letter is confidential and specifically prepared for current and prospective investors. It does not purport to be all-inclusive or a source of specific investment recommendations. Investments involve risks, including the loss of principal. No warranties are made regarding the fitness, accuracy, or completeness of the information for any particular usage or application. 

Editor's Note: This communication discusses stocks not trading on major U.S. exchanges and highlights the risks associated with such investments.

Sincerely, Shreekkanth Viswanathan

Disclaimers:

- SVN Capital is a Registered Investment Advisor in Illinois.
- This communication does not constitute a recommendation to buy, sell, or hold any investment securities.
- SVN Capital maintains a long-term investment approach, focusing on material updates rather than specific investment recommendations.

SVN Capital Fund H1 2025 Letter To Partners

SVN Capital's H1 2025 letter outlines key portfolio highlights, including holdings in Copart Inc., Bajaj Finance, Dino Polska, and Triveni Turbine Limited (TTL). The letter details market trends in the steam turbine industry, TTL's financial performance, and the firm's investment strategy.