Rigorous Investment Process
We recognise that management teams seeking finance also have a business to run and cannot afford to waste time. We try to give feedback in a timely manner and follow a process that ensures we are the right match for investee companies. We have short lines of communication and we aim to provide a flexible and responsive approach to management teams and/or advisors.
Since we receive many investment proposals, we encourage preparation before approaching us. Initially we would like to review an executive summary or a brief business plan and the management team’s financial expectations for the business. After reviewing the summary, we will request an initial meeting with key members of the team to discuss the business plan. The quality and ambitions of the people running the business are probably the most important criteria for us. Following initial discussions, we will undertake brief “high-level” due diligence prior to submitting indicative investment terms. If both parties are happy to proceed, the next step in our process is detailed due diligence.
All investment opportunities will be subject to a thorough due diligence investigation prior to making an investment. This process typically will include a review of the investee company’s management, the market in which the company operates, its competitive position within the market, the market dynamics and the opportunities and risks facing the business. If there is a satisfactory outcome to our due diligence process, a formal proposal will be submitted to our Investment Committee for consideration and approval. By focusing early on key issues, we aim to avoid surprises late in the process and ensure deliverability of the deal.
Our aim is to support senior managers in our portfolio companies, making the skills and resources of our team available as and when necessary. This can range from acting as an occasional sounding board through to implementing specific projects or even providing full time executives.
We believe that the provision of active support to portfolio companies beyond financial investment can potentially facilitate significant expansion and, more importantly, may help management teams react to or prevent any difficulties in their development.
As our investments develop and mature, we will proactively identify opportunities for roll-ups or consolidations and ultimately profitable exits. In this regard, we have the necessary excellence in corporate finance skills to source and execute the relevant transactions.