Verification & documentation
Monitor & advice
Decision making process
Deal Flow Reports
And Social Guidelines
Tool – Questionnaire and Illustrative Graphs
*Outline of Investment Committee
Analysis Decision Making Model
and Articles of Association
Market & Geopolitics
Findings of Global Economic Outlook (UNEP)
of World Resources Institute Global Resources Analysis
Future of the Global Environment – Analysis by UNEP/RIVM
Additional Links and
Example Fund Details
information dated 2004
Investment Committee Report
The analysis and assessment of potential partners is described in an
Investment Committee Report which follows this format:
The owners and principals of the
company. The history of the company. The organisation structure.
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.
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
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
The Manager gives preference to businesses which have adopted
internationally recognised accounting standards.
The Manager evaluates historical financial performance
and financial projections are discussed in detail and agreed with
The Manager determines an appropriate purchase
price of the investment based on expectations of company performance,
market development and exit route.
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.
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