Investment Process
Our Investment Appraisal Process
The investment appraisal process can be split into 5 stages as follows and as shown in the chart below. This process applies for both new and existing opportunities.
Stage I - Deal origination
- Identification of investment opportunities (deals)
- Minimum deal size BWP30 million
- Sectors: all sectors of the economy
- Tenure: 5 to 15 years
Stage II - All opportunities are reviewed on a weekly basis by the Investment team. Collation of data to conduct preliminary analysis and financial modelling.
- Initial project screening
- Preliminary due diligence and financial modelling
- High level term sheet and initial negotiations
Stage III – engagement with Risk and Legal team for their input.
- Preparation of a brief Memorandum and financial model to share with Risk for input
- Indicative term sheet preparation and negotiations for Risk and Legal input before sharing with client.
Stage IV – in depth due diligence performed (financial, technical, tax, legal and environmental depending on the project) is outsourced.
- Full and comprehensive due diligence
Stage V – analyses and collates all the gathered information from the above stages into an investment appraisal paper incorporating input from Risk and Legal for approval based on approval limits.
- Credit and Investment committee Approval (investments not exceeding BWP50 million)
- Board Risk and Investment Approval (investments not exceeding BWP150 million)
- Board Approval (investments exceeding BWP150 million)
A comprehensive project appraisal flow is as shown in the chart below:
Portfolio Management
- Ongoing active management of portfolio companies post disbursement (financial and operational monitoring);
- Assessment of portfolio companies and recommendations for possible divestment and/or restructuring to optimise performance.
