Investment Committee Report

Company

The owners and principals of the company. The history of the company. The organisation structure.

Management and Staff

The key managers of the company, their skills and experience and the history of the management team. The Manager will also pay attention to the ethics of the management team.

The skill level of the employees as a whole, the working environment and the potential supply of labour.

Market and Product

Product description and target customer description.

The size and historical growth of the market which the company serves and the projected outlook for the industry. The rank of the company in the industry locally, nationally, regionally and globally and the competitive advantage of the company.

Production and Equipment

The productive capacity, the technical level of equipment and the value of plant and equipment.

Supplier profiles, production benchmarks (e.g. yields, wastage, inventory) and operations review.

Marketing and Distribution

The company’s marketing infrastructure and experience, proposed marketing strategy and ability to distribute goods or services.

Financial Control

The financial record keeping of the company for reliability and transparency. This also enables the Manager to evaluate what will be required to monitor the investment if it is made.

The Manager gives preference to businesses which have adopted internationally recognised accounting standards.

Projected Performance

The Manager evaluates historical financial performance and financial projections are discussed in detail and agreed with the company.

Valuation

The Manager determines an appropriate purchase price of the investment based on expectations of company performance, market development and exit route.

Deal Structure

The Manager negotiates an appropriate deal structure including price and terms of investment taking in to consideration risk taking and expected returns. At the same time the Manager identifies the likely exit route.

Investments are usually in the form of equity, convertible equity or convertible debt. There may be provisions included in the agreement allowing for preferential dividends or redemption of the investment.

As a method of protecting The Fund’s capital, the Manager may structure investments to allow for repayment of capital, irrespective of whether the sale of an investment is achieved.