We operate in small teams and try to make decisions quickly.
An initial meeting usually enables us to understand the basics of the business and get to know the entrepreneur. We then review each opportunity at our weekly team meeting and decide whether to suggest further discussions.
We try not to waste the precious time of our entrepreneur partners. Our focus is on asking the key questions that allow us to generate a basic understanding of the company, its markets and its future prospects.
Even at this early stage, we like to put forward a summary of the kind of transaction structure that we think would make sense for the entrepreneur and for our fund. Importantly, we show the entrepreneur the main assumptions that we have made about the business in formulating our investment proposal. If this is acceptable then we go to our Investment Committee for an “approval in principle” of the transaction.
If approved, then the entrepreneur has the comfort of knowing that if our due diligence process supports the main assumptions that we have made then the transaction will proceed.
A typical investment process might take three to four months from initial meeting to closing a transaction.