Neural Capital Information Package April2009

1. RAJAT BHATIA August 2009
RAJAT BHATIA Tel: 561 901 9619
Founder & CEO Fax 877 817 4655
NEURAL CAPITAL Work Email: rajat@neuraltrader.com
1525-S Spring Harbor Drive Personal Email: rajatbhatia001@yahoo.com
Delray Beach, FL 33445, USA Skype: rajatbhatia001
SUMMARY
Rajat Bhatia is the Founder & CEO of NEURAL CAPITAL – a boutique investment banking firm that
specializes in raising venture capital and private equity for early stage and growth stage firms. Neural Capital
also develops quantitative trading strategies for the global financial markets. The trading strategies of Neural
Capital include the Neural Trader and the Silver Box, which had a positive return of 124% in 2008 during the
market meltdown. He has also consulted to hedge funds, Wall Street banks, money managers, law firms and
consulting firms such as:
McKinsey & Company, New York City
Oliver Wyman & Company, London
Bain & Co, New York
Morgan Stanley, New York City – Principal Investments
Deutsche Bank, Asia – Global Credit Trading
Commonwealth Bank of Australia, Sydney
Barclays, London
Saudi American Bank, Riyadh
Neuberger Berman, New York
Alliance Bernstein, New York
Schroeders Investment Management, Asia
Susquehanna International Group, Philadelphia
Sageview Capital, San Francisco
Friess Associates, Delaware
Liability Solutions, London
Dubai Knowledge Village, Dubai
Bahrain Institute of Banking & Finance, Bahrain
Bernstein Litowitz Berger & Grossmann LLP, New York
AREAS OF EXPERTISE
Corporate Finance and Mergers & Acquisitions
Venture Capital
Private Equity
Strategic Consulting and Advisory services
Derivative Products: Credit, Currencies, Energy, Equity, Fixed Income, Commodities
Global Debt Capital Markets: Yankee, Euro, Samurai, Dragon and Global Bond Issues
Global Markets Research and Analytics
Alternative Investment Strategies
Proprietary Foreign Exchange Trading
Quantitative Financial Modeling
Quantitative Trading Strategies
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2. RAJAT BHATIA August 2009
WORK EXPERIENCE
Prior to starting NEURAL CAPITAL, Rajat worked for many years as an international investment banker with
bulge bracket wall street firms. His employment history covers:
11/2005 - Present
Founder and CEO NEURAL CAPITAL, Florida
Partner FINANCIAL ENGINEERING, Florida 12/2002 - 11/2005
Lead Portfolio Analyst WILLIAMS ENERGY TRADING, TULSA 08/2001 - 11/2002
Founder and CEO INDIAFX.com 06/1997 - 06/2001
Senior Vice President CITIBANK GLOBAL ASSET MANAGEMENT, London
Alternative Investment Strategies Group 07/1996 - 11/1997
Vice President LEHMAN BROTHERS INTERNATIONAL, London
Global Derivative Products Group 01/1995 - 06/1997
Assistant Vice President MERRILL LYNCH CAPITAL MARKETS, Hong Kong
Asia Pacific Capital Markets and Derivative Products Group 07/1993 - 12/1994
Management Consultant BOOZ ALLEN HAMILTON, Sydney, Australia
Financial Markets Group 05/1992 - 05/1993
Manager CITICORP INVESTMENT BANK, INDIA
Interbank Foreign Exchange Trading Group 06/1988 - 05/1991
Management Consultant ANDERSEN CONSULTING, LONDON
Financial Markets Group 06/1987 - 05/1988
As an investment banker, Rajat worked with the following clients in the public and private sectors:
Asia Pacific:
Ministry of Finance, Republic of India, New Delhi
Reserve Bank of India, Headquarters, Mumbai, India
Asian Development Bank, Manila
Oil and Natural Gas Corporation, New Delhi
Indian Oil Corporation, New Delhi
National Thermal Power Corporation, New Delhi
ICICI, State Bank of India, IDBI, IFCI
Korea Electric Power Corporation
Republic of China
Electricity Generating Authority of Thailand
Air India
Europe:
Republic of Italy
Kingdom of Belgium
European Bank for Reconstruction and Development (EBRD)
Postipanki Bank, Finland
Cargill, England
Industrial Bank of Japan, London
Scottish Life and Scottish Widows, Edinburgh and Glasgow
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3. RAJAT BHATIA August 2009
NEURAL CAPITAL has also provided strategic advisory and investment banking services to start up firms
located in California, Boston, Seattle, Washington D.C. and India in the following industries:
Advanced Solar Technologies
Specialty Chemicals and De Copier Technologies
Aerospace
“Green” Construction Technologies and Materials
Global Housing
Air Taxi Services
Next-generation Hybrid / Electric Aircraft
Refinery Projects
EDUCATION
Columbia University, New York (1991 to 1992) – Master of International Affairs with specialization in
International Banking and Finance. Dean’s Fellow – top 5% of the Class of 1992
Indian Institute of Management, Ahmedabad (1985 to 1987) - MBA with a major in Finance Class of 1987
St. Stephen’s College, University of Delhi (1982 to 1985) - B. A. Honors in Economics Class of 1985
AWARDS, HONOURS and INTERESTS
Academic:
Founder’s Gold Medal at La Martiniere for Boys, Calcutta in 1980 for Ranking first in ICSE Examinations
Dean’s Fellow at Columbia University, New York (top 5% of the Class of 1992)
Professional:
Winner (most profitable bank) of the November 1988 Citibank Asia-Pacific Bourse Game in Singapore
Elected Best Trader in Asia-Pacific at the 1988 Citibank Asia-Pacific Bourse Game
Literary:
Cambridge Essay Prize at St. Stephen’s College, 1985.
Editor of “Synergy” a monthly student magazine at IIM Ahmedabad
Editor of the student “Yearbook” at IIM Ahmedabad
Author of the book “One Man’s Dream – A Million Kids’ Beneficence”
Sports:
Vice President, Tulsa Cricket Association 2001-2002
Played cricket for Hampstead Cricket Club, London 1999-2000
Played cricket for the Palm Tree Cricket Club, Highgate, London 1996-2000
Captain of the Cross Country Athletics team at IIM Ahmedabad
Member of the soccer team at IIM Ahmedabad
Member of the Adventure Club at IIM Ahmedabad
- Leader of the cycling and mountain trekking trip from IIM Ahmedabad to Mount Abu
- Member of a cycling trip from IIM Ahmedabad to Lothal (center of the Indus Valley civilization)
Member of the Cross Country Athletics team at St Stephen’s College
Athletics track champion in both the 800 and 1500 metres at La Martiniere for Boys, Calcutta in 1980
Cross country Flying in Cessna 152 and 172 at Merritt Island, Cape Canaveral, Florida
Aerobatic Flying in T-67 Slingsby aircraft at Compton Abbas Air Base, Dorset, England
Played Tennis and Squash at the school, college or club level
Recreational swimming, snorkeling and windsurfing
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4. RAJAT BHATIA August 2009
PUBLICATIONS
“Financial Chernobyl or Manageable Risk - The brewing storm in CDOs and sub-prime mortgages” published in The
Hedge Fund Journal, London, August 2007
“Artificial Neural Networks in Finance” in the Financial Express, July 2007
“Currency and Interest Rate Swaps” in the Economic Times, 1988
“Caps, Collars and Floors” in the Economic Times, 1988
“Offshore Banking in India” in the Financial Express, 1988
“One Man’s Dream – A Million Kids Beneficence”, a book on De Nobili School and the Life of Father Hess
LANGUAGES
English - Fluent written as well as spoken
Hindi - Fluent written as well as spoken
Punjabi – Fluent Conversational
Bengali - Fluent Conversational
Russian – Basic Conversational
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5. RAJAT BHATIA August 2009
Appendix 1: CORPORATE FINANCE DEALS LIST
(INCLUDING M&A, PRIVATE EQUITY AND VENTURE CAITAL)
CLIENT DEAL SIZE TYPE OF DEAL DEAL STRUCTURE
TELSTRA, Australia US$ 1 billion Cross Border M&A Advised TELSTRA on the valuation of VSNL – India’s sole
International Telecom operator. Negotiated a cross-border
And VSNL, India
M&A deal with VSNL and the Foreign Investment Promotion
Board of India on behalf of Telstra. Deal was not consummated
because the Foreign Investment Promotion Board refused
permission for a foreign entity to take a majority stake in VSNL.
Performed cash flow modelling and valuation of VSNL and
worked closely with the senior management of both sides.
Listed Indian US$ 15 million PIPES Private placement of equity with Bankers Trust Funds
Petrochemicals Management, Sydney. The company was listed on the Mumbai
company Stock Exchange.
Commonwealth Bank Strategic Business Restructuring of the bank’s domestic retail branch network
of Australia Advisory Restructuring prior prior to privatisation as part of a team of management
to Privatization consultants from Booz.Allen & Hamilton, Sydney.
Listed Refinery $ 200 million Private Equity Growth stage financing for an Indian refinery firm listed on the
Company Bombay Stock Exchange and on Luxembourg Stock Exchange
Start up Aerospace US$ 15 million Early Stage / Seed Start up aerospace component manufacturer to outsource the
component Investment manufacturing of aerospace components from United
manufacturer Technologies and Boeing
Green Construction US$ 20 million Private Equity Growth Stage private equity investment in an American firm
Technologies looking to enter the Indian market for green construction
Company materials
Advanced Solar US$ 20 million Venture Capital Stage 1 Venture Capital for an advanced solar technology form
Technologies specializing in multi junction solar cells
Company
Start up Nano US$ 10 million Private Equity Currently working with a start up Nano Technology company
Technology Company focused on new technologies and alternative fuels such as
ethanol to raise $ 10 million as seed capital from venture capital
/ private equity investors.
Various Real Estate US$ 20 million Financial Investment in Distressed real estate – both commercial and
Deals to US$ 300 Restructuring and residential. Deals include several well know hotel properties
million Distressed like the St Regis in Dana Point, California, the La Costa,
Investments Fountainbleau in Las Vegas and several buildings in Miami and
South Florida which are in distressed sale
This is only a partial list of deals for illustration purposes only.
The deals list is to be treated as being private and confidential and is not for onward circulation.
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6. RAJAT BHATIA August 2009
Appendix 2: DEBT CAPITAL MARKETS DEALS LIST
CLIENT DEAL SIZE TYPE OF DEAL DEAL STRUCTURE
Republic of Italy US$ 1 billion Global Bond Issue Global bond issue and simultaneous re-structuring of
liability portfolio which included international bonds
issued in US Dollars, Sterling, ECU, Yen, Deutsche Marks
and French Franc. Identified potential savings of US$ 30
million for the Republic of Italy.
Kingdom of Belgium US$ 500 Global Bond Issue Global bond issue including bond-buy backs through
million tender offers.
European Investment US$ 500 Global Bond Issue Global bond issue along with simultaneous re-structuring
Bank million of their liability portfolio involving bond-buy backs
through tender-offers.
Indian Oil US$ 250 Eurobond issue Two-tranche, 5 year and 7 year maturity
Corporation million
Korea Electric US$ 450 Eurobond issue US$ 450 million Eurobond issue along with the exercise of
Power Corporation million put options on their outstanding bonds which resulted in
cheaper re-financing.
Industrial Credit & US$ 25 million Euro Bond issue (Co- 7-year Euro bond issue prices at 150 over T-Bond curve
Investment Corp of Managers)
India
Industrial US$ 25 million FRN issue (Co- 7-year FRN issue priced at 6-month US$ Libor + 82.5 bp
Development Bank of Managers)
India
Asian Development US$ 650 Hybrid bond issue The bonds had a principal guarantee from the ADB (rated
Bank and ONGC million Yankee and Euro AAA) and a coupon guarantee from ONGC (rated BB+).
This reduced the new issue spread on this structured 12-
year bond issue from 350 basis points over 10-year US
Treasuries to 170 basis points
Republic of China US$ 1 billion Global bond issue 10-year maturity
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7. RAJAT BHATIA August 2009
Appendix 3: STRUCTURED DERIVATIVE PRODUCTS DEALS LIST
(for Institutional Investors)
CLIENT DEAL SIZE TYPE OF DEAL DEAL STRUCTURE
Baring Asset Mgt, US$ 10 million Option embedded Structured investments linked to Italian Lira swap rates
London MTNs
Springfield Asia, US$ 5 million FX Coupon = IDR 27% or 10% or 0.00% depending upon
Hong Kong Digital/Pyramid IDR/US$ range
Note
Nissho Iwai, Japan US$ 70 million Diff. Swap Unwind of structured and leveraged deal indexed to the
spread between 10-year Swedish Kroner swap rates and 10-
year Danish Kroner swap rates.
PT Ispat Indo, US$ 50 million Portfolio Hedge Hedging of US Treasury Bond portfolio through structured
Jakarta swaps and options on US long bond.
Overseas China US$ 8 million Re-structuring of * 10 times leveraged swap indexed to DEM, FRF and GBP
Bank, Taiwan US$ 9 million structured interest swap rates
US$ 16 million rate swaps
(4 deals) * 10 times leveraged swap indexed to 3 month CAD
US$ 8 million
* 15 times leveraged swap indexed to 3 month ECU and
GBP
* 10 times leveraged swap indexed to DEM, FRF and GBP
swap rates
KS Global Fund, US$ 200 Structured notes Coupon = 12 months Yen Libor + 101.80 US$ put, Yen call
Tokyo million K/O 102.80, Hurdle 91.80
Toshoku, Japan US$ 49 million Structured notes Coupon = 12 month Yen Libor + 102.30 US$ put, Yen call
K/O 104.30, Hurdle 92.30
Fuji Oil, Japan US$ 50 million Inverse Floaters Coupon = strike - 6 month ITL Libor
Nippon Sanso, Japan US$ 58 million Inverse Floaters Coupon = strike - 6 month ITL Libor
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8. RAJAT BHATIA August 2009
Appendix 4: STRUCTURED DERIVATIVE PRODUCTS DEALS LIST
(Liability Management Driven Deals)
CLIENT DEAL SIZE TYPE OF DEAL DEAL STRUCTURE
British Aerospace US$ 400 Structured interest Re-structuring of debt portfolio using interest rate options and
million rate swap swaps at a time when US interest rates were very low and the
yield curve was very flat.
Air India US$ 350 Jet Fuel Linked Bond issue with embedded jet fuel oil put options to finance the
million Financing purchase of new Boeing 747s under a partial guarantee from the
US Exim Bank.
Industrial Finance Yen 40 billion Cross-currency Swap unwind.
Corporation of India interest rate swap
General Electric US$ 10 million Emerging market 1 year deal indexed to non-deliverable Indian Rupee forwards.
Capital Corp. hedge This deal was designed to hedge General Electric’s exposure to
investments to India.
Hanil Bank, Korea US$ 100 Eurobond issue with Structured financing swap with embedded digital FX options to
million financing swap reduce their cost of funding from 50 basis points over 6-month
US$ Libor to 35 basis points.
EGAT, Thailand Yen 50 billion Cross-currency Yen fixed rate swapped into US$ floating rate
Interest Rate Swap
Air India US$ 650 Structured interest Structured deal to swap a portfolio a floating rate loans into one
million rate swap fixed rate liability to hedge US$ interest rate risk.
PT Sinar Mas Group US$ 25 million Various structured Unwinding of US$/Yen and US$/DEM knock-out Options
Treasury, Jakarta deals
US$ 90 million Structuring of US$ floating rate liabilities into Yen Floaters
through structured swaps
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9. RAJAT BHATIA August 2009
Appendix 5: ALTERNATIVE INVESTMENT STRATEGIES DEALS LIST
CBOs / CLOs, CREDIT DERIVATIVES AND FUND-OF-HEDGE FUNDS
CLIENT DEAL SIZE TYPE OF DEAL DEAL STRUCTURE
Postipankki Bank US$ 450 Mortgage Backed Re-structuring and hedging of the Mortgage Backed
Finland million Securities Securities Portfolio using caps, floors and swaptions.
Various Investors US$ 150 Participating Collateralised Bond Obligation with Principal and
million Obligations Without Contractual Coupon rated A2 by Moody’s.
Residuals
Unrated Contingent coupon that is dependent upon cash
flows from High Yield Bond Portfolio aith average rating of
B1
Various Investors US$ 350 Captiva CBO - I Collateralised Bond Obligation with Senior Tranche rated
million A2 by Moody’s and wrapped with a CAPMAC guarantee
Equity tranche unrated with a targeted return of 14%.
Various Investors US$ 300 Captiva CLO - I Collateralised Loan Obligation with Senior and Junior
million Tranches
Various Investors US$ 500 Legion Fund and The Legion Funds and Alpine Select were fund-of-hedge
million Alpine Select funds that were created by Citibank Global Asset
Management out of the San Fransisco office and marketedto
institutional investors in Europe, the Middle East and Asia.
Banque Brussels US$ 1 billion Asset Backed Tax Portfolio of Loans made to China, India and the Philippines
Lambert Driven Credit re-packaged and sold to Banque Brussels Lambert with a
Derivative credit derivative to back the transaction. The deal was driven
by tax considerations.
Asea Brown Boveri, CHF 13 Hedging of Credit Derivative for electricity projects in India
Switzerland million Credit/Default Risk
Sumitomo Bank, US$ 150 Hedging of Credit Credit Derivative for hedging their loan portfolio in
Singapore million risk Indonesia
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