Investment Framework

Investment Framework

Sharma Capital Holdings applies a disciplined, repeatable investment framework designed for small-market companies. This page outlines SCH's rare models — the Portfolio Risk Scoring Model, Investment Thesis, and Deal Screening Matrix — which guide sourcing, underwriting, and long-term value creation.

Section 1 — Overview

About the SCH Investment Framework

SCH's invetment approach is built on structure, clarity and institutional discipline.

This framework ensures:

1. Consistent evaluation of opportunities

2. Transparent risk assessment

3. Repeatable underwriting

4. Alignment with SCH's governance model

5. Scalable post-acquisition integration

These models are used across all acquisition targets and portfolio companies.

Section 2 — Portfolio Risk Scoring Model

Portfolio Risk Scoring Model

The SCH Portfolio Risk Scoring Model evaluates companies across five weighted categories:

1. Financial Risk — 30%

2. Operational Risk — 25%

3. Governance & Leadership Risk — 20%

4. Market & Competitive Risk — 15%

5. Compliance & Legal Risk — 10%

Each category is scored 1-5, producing a weighted total risk score that classifies the business as:

1. Low Risk (Green)

2. Moderate Risk (Yellow)

3. High Risk (Red)

This model guides SCH's oversight, integration priorities, and investment decisions.

Section 3 — SCH Investment Thesis

Investment Thesis

SCH targets small-market comapnies that are:

1. Operationally sound but under-optimized

2. Founder-dependent

3. Lacking governance and systems

4. Positioned for modernization

5. Undervalued due to structural inefficiencies

The SCH thesis is built on three pillars:

1. Governance creates clarity

2. Clarity improves performance

3. Performance compounds value

This thesis guides sourcing, underwriting, and long-term ownership strategy.

Section 4 — Deal Screening Matrix

Deal Screening Matrix

SCH uses a structured screening matrix to evaluate acquisition opportunities based on:

1. Financial Stability

2. Market durability

3. Operational maturity

4. Owner transition readiness

5. Risk profile

6. Strategic fit

Deals are categorized into:

Tier 1 — High-Priority opportunities

Tier 2 — Conditional opportunities

Tier 3 — Decline or Monitor

This ensures SCH focuses on the most aligned and value-accretive opportunities.

Section 5 — How These Models Work Together

Integrated Investment System

Together, these frameworks create a unified investment system:

1. The Investment Thesis defines what SCH targets

2. The Deal Screening Matrix filters opportunities

3. The Risk Scoring Model quanitifies risk

4. The Governance Model (from our corporate governance page) guides integration

5. Our most recently published corporate White Paper (From May 2026) explains the philosophy behind it all